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-1994, 2005-2014) and differ in bank regulations, especially concerning capital requirements and enforcement. In contrast to the … forces beyond formal regulations incentivize bank managers to deleverage when their banks are in distress …
Persistent link: https://www.econbiz.de/10012107655
uneven playing field enables non-bank FinTech firms to challenge banks for specific products whose success is not tied to …
Persistent link: https://www.econbiz.de/10012120303
Using a novel database, we show that the stock-price impact of analyst trade ideas is at least as large as the impact of stock recommendation, target price, and earnings forecast changes, and that investors following trade ideas can earn significant abnormal returns. Trade ideas triggered by...
Persistent link: https://www.econbiz.de/10012120228
Following the Global Settlement, analysts extensively use a top pick designation to highlight their highest conviction best ideas. Such a designation enables analysts to provide greater granularity of information, but it can potentially be influenced by conflicts of interest. Examining a...
Persistent link: https://www.econbiz.de/10012301460
This paper examines the use of credit derivatives by US bank holding companies from 1999 to 2003 with assets in excess … of one billion dollars. Using the Federal Reserve Bank of Chicago Bank Holding Company Database, we find that in 2003 … represent on average two thirds of the assets of bank holding companies with assets in excess of $1 billion. Few banks are net …
Persistent link: https://www.econbiz.de/10012713397
In this paper, we explain how enterprise risk management creates value for shareholders. In contrast to the existing finance literature, we emphasize the organizational benefits of risk management. We show how a firm should choose its risk appetite and measure risk when implementing enterprise...
Persistent link: https://www.econbiz.de/10012733166
From 2010 to 2012, the relation between bank stock returns from European Union (EU) countries and the returns on …
Persistent link: https://www.econbiz.de/10011279577
From 1973 to 2014, the common stock of U.S. banks with loan growth in the top quartile of banks over a three-year period significantly underperforms the common stock of banks with loan growth in the bottom quartile over the next three years. The benchmark-adjusted cumulative difference in...
Persistent link: https://www.econbiz.de/10011516043
We investigate why only some banks use regulatory arbitrage. We predict that banks wanting to be riskier than allowed by capital regulations (constrained banks) use regulatory arbitrage while others do not. We find support for this hypothesis using trust preferred securities (TPS) issuance, a...
Persistent link: https://www.econbiz.de/10010353295
We investigate whether a bank’s performance during the 1998 crisis, which was viewed at the time as the most dramatic … crisis since the Great Depression, predicts its performance during the recent financial crisis. One hypothesis is that a bank …. Another hypothesis is that a bank’s poor experience in a crisis is tied to aspects of its business model that are persistent …
Persistent link: https://www.econbiz.de/10009240510