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a broad panel of large US bank holding companies over the period 1997–2011, we find that both board size and independent … directors decrease bank performance. Although gender diversity improves bank performance in the pre-Sarbanes-Oxley Act (SOX … other sensitivity checks including alternative proxies for bank performance. …
Persistent link: https://www.econbiz.de/10010662598
Although credit rating agencies have gradually moved away from a policy of never rating a corporation above the sovereign (the ‘sovereign ceiling’), it appears that sovereign credit ratings remain a significant determinant of corporate credit ratings. We examine this link using data for...
Persistent link: https://www.econbiz.de/10011065594
This paper analyzes the productivity and efficiency of Turkish banks from 2002 to 2010. We obtained estimates of efficiency, productivity growth and efficiency growth using a Bayesian stochastic frontier approach and focused on accounting for Non-Performing Loans (NPLs) for use in our model....
Persistent link: https://www.econbiz.de/10010595292
We empirically analyze the impact of uninsured deposits on a bank’s cost of public debt. Uninsured depositors can exert … market discipline over a bank and potentially reduce its agency cost of debt through informed monitoring. We use a sample of … public bond issues by U.S. bank holding companies from 1994 to 2013 and find statistically strong evidence that banks with …
Persistent link: https://www.econbiz.de/10011209865
industry and proposed in the literature. We stress test the economic value of equity of a bank balance sheet based on Call … Report data from a large U.S. bank. We show that our method provides more information about the bank’s exposure to IRR using …
Persistent link: https://www.econbiz.de/10011118062
Using a sample of 936 acquisitions of commercial banks, we examine the relation between the probability to engage in value-reducing acquisitions and corporate governance structures, as well as the relation between acquirer announcement-period abnormal stock returns and antitakeover indices and...
Persistent link: https://www.econbiz.de/10010709482
The role of national governance upon bank-level risk in the Asian region is analysed. Improvements in national … governance are risk reducing at the bank level in developed nations in the Asian region, and over the longer run for those … nations affected by the Asian Financial Crisis. A U-shaped relationship between bank risk and bank capital is found, and it is …
Persistent link: https://www.econbiz.de/10011118091
We employ a natural experiment from the 1980s, predating the ubiquitous clamor for independence influenced corporate governance structures, to examine which governance mechanisms are associated with firm survival and failure. We find that thrifts were more likely to survive the thrift crisis...
Persistent link: https://www.econbiz.de/10010577952
New liquidity rules phased in under Basel III define the new net stable funding ratio (NSFR) to promote sustainable funding structures at financial institutions. In this paper, we analyze characteristics and drivers of NSFR for a sample of 921 Western European banks between 1996 and 2010. We...
Persistent link: https://www.econbiz.de/10010785400
We modify Adrian and Brunnermeier’s (2011) CoVaR, the VaR of the financial system conditional on an institution being in financial distress. We change the definition of financial distress from an institution being exactly at its VaR to being at most at its VaR. This change allows us to...
Persistent link: https://www.econbiz.de/10011065629