This paper investigates the stock returns and volatility size effects for firm performance in the Taiwan tourism industry, especially the impacts arising from the tourism policy reform that allowed mainland Chinese tourists to travel to Taiwan. Four conditional univariate GARCH models are used...

We show that efficiency is greater when financial institutions simultaneously offer different products, such as banking, insurance and investment banking (cross selling). Our results are based on the fact that offering multiple products improves the no-deviation constraints of the implicit...

This paper investigates whether the bond market disciplines all banks equally in the sense of demanding the same relative risk premium across banks of different risk over time. To test this hypothesis the paper compares the difference between the credit spreads in the primary market of bank and...

The growth of the European financial markets, together with the new, stricter regulations on the U.S. financial system, has spurred a debate about the competitiveness of the U.S. financial markets. In this paper, we compare underwriting costs in the U.S. bond market and the Eurobond market over...

Modern corporate finance theory argues that although bank monitoring is beneficial to borrowers, it also allows banks banks to use the private information they gain through monitoring to quot;hold-upquot; borrowers for higher interest rates. In this paper, we seek empirical evidence for this...

Theory suggests that banks' private information about borrowers lets them hold up borrowers for higher interest rates. Since hold-up power increases with borrower risk, banks with exploitable information should be able to raise their rates in recessions by more than is justified by borrower risk...

This paper investigates the equity investments and voting rights that American banks control through their trust business. Following the evidence that German banks use the proxy voting rights they control to place their representatives on the firm's board of directors, the paper also studies...

This paper presents a theory of firm access to the bond market in which information gathering agencies provide a valuable service but alter the relative cost of this funding source across firms of different creditworthiness and over the business cycle. The theory builds on two assumptions....

This paper presents a theory of firm access to the bond market in which information gathering agencies are valuable but alter the relative cost of bond financing across firms and over the business cycle. The theory builds on the assumption that information frictions prevent these agencies from...

This paper uses duration analysis to investigate the timing of firms' decision to first access the public bond market. We find that, consistent with Diamond's (1991) model, reputation has a non-monotonic effect on the timing of firms' first public bond issue: firms with the highest and lowest...