Similar Search Results

Recovering Risky Technologies Using The Almost Ideal Demand System: An Application To U.S. Banking

Hughes, Joseph P.; Mester, Loretta J.; Lang, William; … - 2000

between the risk-incentives literature in banking that ignores the microeconomics of production and the production literature …

Persistent link: https://www.econbiz.de/10010334306

The future of large, internationally active banks: Does scale define the winners?

Hughes, Joseph P.; Mester, Loretta J. - 2015

Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks - that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...

Persistent link: https://www.econbiz.de/10011687916

Measuring agency costs and the value of investment opportunities of U.S. bank holding companies with stochastic frontier estimation

Hughes, Joseph P.; Mester, Loretta J.; Moon, Choon-Geol - 2016

By eliminating the influence of statistical noise, stochastic frontier techniques permit the estimation of the best-practice value of a firm´s investment opportunities and the magnitude of a firm´s systematic failure to achieve its best-practice market value - a gauge of the magnitude of...

Persistent link: https://www.econbiz.de/10011687921

Market discipline working for and against financial stability: The two faces of equity capital in U.S. commercial banking

Hughes, Joseph P.; Mester, Loretta J.; Moon, Choon-geol - 2016

The second Basel Capital Accord points to market discipline as a tool to reinforce capital standards and supervision in promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong incentives on banks to operate in a safe and...

Persistent link: https://www.econbiz.de/10011687927

The future of large, internationally active banks : does scale define the winners?

Hughes, Joseph P.; Mester, Loretta J. - 2015

Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks – that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...

Persistent link: https://www.econbiz.de/10011416928

Measuring the performance of banks : theory, practice, evidence, and some policy implications

Hughes, Joseph P.; Mester, Loretta J. - 2013

The unique capital structure of commercial banking - funding production with demandable debt that participates in the … economyś payments system - affects various aspects of banking. It shapes banks ́comparative advantage in providing financial … liabilities to reduce the probability of bank runs. These aspects of banking affect a bankś choice of risk vs. expected return …

Persistent link: https://www.econbiz.de/10009774419

Measuring agency costs and the value of investment opportunities of U.S. bank holding companies with stochastic frontier estimation

Hughes, Joseph P.; Mester, Loretta J.; Moon, Choon-geol - 2016

By eliminating the influence of statistical noise, stochastic frontier techniques permit the estimation of the best-practice value of a firmś investment opportunities and the magnitude of a firmś systematic failure to achieve its best-practice market value - a gauge of the magnitude of agency...

Persistent link: https://www.econbiz.de/10011490908

Market discipline working for and against financial stability : the two faces of equity capital in U.S. commercial banking

Hughes, Joseph P.; Mester, Loretta J.; Moon, Choon-geol - 2016

Persistent link: https://www.econbiz.de/10011582019

How bad is a bad loan? : distinguishing inherent credit risk from inefficient lending (does the capital market price this difference?)

Hughes, Joseph P.; Moon, Choon-geol - 2017

We develop a novel technique to decompose banks' ratio of nonperforming loans to total loans into two components: first, a minimum ratio that represents best-practice lending given the volume and composition of a bank's loans, the average contractual interest rate charged on these loans, and...

Persistent link: https://www.econbiz.de/10011771586

How bad is a bad loan? : distinguishing inherent credit risk from inefficient lending (does the capital market price this difference?)

Hughes, Joseph P.; Moon, Choon-geol - 2018

We develop a novel technique to decompose banks' ratio of nonperforming loans to total loans into three components: first, a minimum ratio that represents best-practice lending given the volume and composition of a bank's loans, the average contractual interest rate charged on these loans, and...

Persistent link: https://www.econbiz.de/10011779307