Hoang, Khoa TA; Faff, Robert; Haq, Mamiza - In: Australian Journal of Management 39 (2014) 3, pp. 327-350
This paper explores the impact of market discipline on bank risk taking. We examine a broad sample of financial … discipline helps reduce bank risk (both equity and credit risk). Moreover, we find that this negative impact of market discipline … period. However, the disciplinary effect of market discipline is not enhanced in the presence of bank capital. We highlight …