Using a 1979 survey of the organizational structure of 65 bank holding companies in 12 states, the author investigates the relationship between holding company structure and the performance of bank subsidiaries.

This paper tests a two-part hypothesis: first, that during the period between publication of the risk-based capital requirements in early 1989 and the end of 1992, bank holding companies (BHCs) faced a statistically significant decrease in stock returns if they issued new common stock; second,...