It is assumed that the awarding of a "systemic importance" seal by the regulator has a positive effect on the equity value of its holder. By employing an event study analysis on a new set of regulatory announcements, we find that financial market participants react to these announcements which...

This paper estimates shadow price of equity for U.S. commercial banks over 2001--2018 using non-parametric estimators of the underlying cost frontier and tests the existence of “Too-Big-to-Fail” (TBTF) banks. Evidence on the existence of TBTF banks is found. Specifically, I find that a...