In this paper we study Norwegian rights issues with focus on the announcement effects of raising seasoned equity. The abnormal returns at announcement in Norway are around −8% to −10% for rights issues, and this is much higher than what is found in other countries. The average...

The risk-taking channel of monetary policy predicts a negative relationship between interest rates and the risk-taking incentives of bank CEOs. Using a sample of U.S. banks over the period 1992-2006, we provide empirical evidence consistent with this prediction. Our finding holds for both...

This study is an empirical attempt to investigate whether firms' bond issues mitigate rent extraction by their banks. To that end, I focus on the cash holdings of Japanese listed firms in the early 1980s, when Japanese banks used compensation balances as a device to extract rent from their...

We investigate the economic impacts of bank levies on bank-dependent borrowers, exploiting the surprise announcement of a bank tax by the Tokyo metropolitan government on February 7th, 2000. We find that the tax announcement had negative effects on the abnormal return of firms which depended on...

We investigate the effects of market structure on bank profitability in 40 emerging and advanced economies. We find that bank profitability in relation to market structure is different between developed and emerging banking markets. First, in developed banking sectors, profitability is...

In this paper I investigate the bank specific and macroeconomic determinants of profitability in participation banks for Turkish banking sector by looking at two different profitability indicators namely return on assets (ROA) and return on equity (ROE). I find that in terms of bank specific...

This study examined the influence of financial deepening on manufacturing output in Nigeria. Using the vector autoregression (VAR) based Johansen cointegration technique and an eventual least squares (OLS) estimator on annual data spanning 1970 to 2010, we find insignificant coefficients for...

In this study, we propose the use of Heterogeneous Autoregressive (HAR) type realized volatility models in combination with the Extreme Value Theory (EVT) method for Value-at-Risk (VaR) forecasting. The proposed model accounts for the long memory property of the realized volatility and the fat...

We address the Lakonishok, Shleifer and Vishny (LSV) herding measure. Frey, Herbst and Walter (FHW) have shown by empirical simulations that LSV is biased. Using a theoretical model we provide a formal explanation of this bias, and show that a corrected herding measure depends on some...

The paper analyzes the financial sustainability of private pay-as-you-go pension funds, focusing on the particular demographic risks affecting these institutions. We propose a model to describe the evolution of these pension funds, including two stochastic variables: â€global asset...