Showing 1 - 10 of 51
This paper presents and discusses the estimates of the present value of corporate profits in the United States from 1984 to 2018. To value the expected income stream, it uses the long-range forecasts of professional forecasters for pre-tax corporate earnings and long-term Treasury note yields,...
Persistent link: https://www.econbiz.de/10012892904
The paper investigates EU banks' profitability through the recent financial cycle using banklevelbalance sheet and …, such as higher reliance on fees andcommission income, were associated with better profitability post-crisis …
Persistent link: https://www.econbiz.de/10012913876
Schemes of residual profit allocation (RPA) tax multinationals by allocating their 'routine' profits to countries in … which their activities take place and sharing their remaining 'residual' profit across countries on some formulaic basis …
Persistent link: https://www.econbiz.de/10012836099
This paper explores the determinants of profitability across large euro area banks using a novel approach based on … conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank … profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a …
Persistent link: https://www.econbiz.de/10012843521
We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We … first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the … empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for …
Persistent link: https://www.econbiz.de/10012892910
sectoral business cycle sensitivity affected corporate profitability during the recovery period of the global financial crisis … (GFC). Using cross-sectional analyses, our findings indicate that corporate profitability improved significantly after the … be significant in explaining changes in corporate profitability …
Persistent link: https://www.econbiz.de/10012895130
The profitability of Italian banks depends, among other factors, on the strength of the ongoing economic recovery, the … resolving nonperforming loans (NPLs) and to foster banking sector consolidation. Improved profitability would enable banks to … smaller banks face profitability pressures, even under favorable assumptions. There is thus a need to push ahead decisively on …
Persistent link: https://www.econbiz.de/10012977788
In this paper, we use a bank-level panel dataset to investigate the determinants of bank interest margins in the Caucasus and Central Asia (CCA) over the period 1998–2013. We apply the dealership model of Ho and Saunders (1981) and its extensions to assess the extent to which high spreads of...
Persistent link: https://www.econbiz.de/10013022261
Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many profitable banks choose to invest in untested financial instruments before the crisis, realizing significant losses? We attempt to reconcile theory and evidence. In our setup, banks...
Persistent link: https://www.econbiz.de/10012999745
effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible …. A bottom-up analysis of 386 Italian banks suggests that while profitability is expected to improve as the economy … profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely …
Persistent link: https://www.econbiz.de/10012932958