Managers' incentives may conflict with those of shareholders or creditors, particularly at leveraged, opaque banks … risks that benefit themselves at the expense of depositors. Banks must design contracting and governance structures that … sufficiently resolve agency problems so that they can attract funding from outside shareholders and depositors. We examine banks …

perfect and efficient capital markets, reducing banks' leverage reduces the risk and cost of equity but leaves the overall …-capitalized banks has lower systematic risk (beta) and lower idiosyncratic risk. However, over the last 40 years, lower risk banks have … other samples. The size of the low risk anomaly within banks suggests that the cost of capital effects of capital …

This paper examines how governance and risk management affect risk-taking in banks. It distinguishes between good risks …

the financial health of the contracting parties and uncertainty regarding the borrowers' credit quality. The relative …

We propose and test a theory of corporate liquidity management in which credit lines provided by banks to firms are a …

volume of new lending. Firms borrowing from banks during seasonal "sales" in late spring and fall issue at 19 basis points … strongly associated with market concentration among a few large banks with repeated interactions. …

Liquidity production is a central role of banks. We show that, under idealized conditions, high leverage is optimal for … banks when there is a market premium for (socially valuable) liquid financial claims and no deviations from Modigliani and …, and (iii) why limits on the leverage of regulated banks impede their ability to compete with unregulated shadow banks. Our …

Current theoretical and empirical research suggests that small banks have a comparative advantage in processing soft … SMEs borrow from smaller banks and smaller banks have stronger relationships with their borrowers (Berger, Miller, Petersen … firms tend to borrow from larger banks. However, unlike BMPRS we did not find that this was because larger firms are more …