This paper simultaneously models the determinants of foreign bank profitability and commercial credit extension in the United States between 11987 and 1991. Overall, the results indicate that supply-side factors such as capital strength, commercial and industrial loan growth, and assets...

Abstract: The market share of U.S. business loans made by foreign-owned banks has increased dramatically since 1980. At the same time, foreign direct investment in the U.S. rose, so that much of the increase in foreign-owned U.S.-based bank lending to businesses in the U.S. could conceivably be...

We investigate the impact of bank capital, market discipline and charter value as bank disciplinary tools on both bank equity risk (systematic risk, total risk, and idiosyncratic risk) and default risk/credit risk. We analyse 218 listed banks across 15 Asia-Pacific countries, and find that bank...

There is little evidence to show that capital markets allocate capital to the most profitable uses. We bridge this gap by examining Indian IPOs. When market regulations are weak, more firms go public and firms with poor fundamentals raise more capital. Over time, primary markets do not...

Exploiting a unique setting of overlapping insiders between acquirers and targets in India, we examine how information asymmetry between the transacting parties influences the returns to acquiring firms’ shareholders as well as the method of payment. Using a novel dataset, we find that...