Athanasoglou, Panayiotis - Volkswirtschaftliche Fakultät, … - 2011
This paper examines the simultaneous relationship between bank capital and risk. A model is set up which assumes that … banks’ decisions regarding capital and risk are made endogenously in a dynamic pattern. A simultaneous equation system was … relationship between regulatory (equity) capital and risk which is positive (negative). However, a positive two-way relationship …