While empirical literature has documented a negative relation between default risk and stock returns, theory suggests …. In accordance with theory, we find that the systematic part, measured as the PD sensitivity to aggregate default risk, is …

The main purpose of this study is to investigate whether there is a relationship between bank efficiency and stock …. However, the results suggest that profit efficiency is more informative than cost efficiency as the former explains, to a …-2009) appears to have a negative influence on both banking efficiency and stock performance …

The purpose of this paper is to examine whether the stock performance of EU listed banks is related to their efficiency … analysis to estimate the cost and profit efficiency of banks, while controlling for environmental factors. Then, we investigate … if changes in profit and cost efficiency are reflected in changes in stock prices. Our results indicate that the change …

We test whether bank loans change public bond yields. A 10% increase in bank debt raises bond yields by 15bps …, reflecting a trade-off between the benefits of bank cross-monitoring and higher bond risk. This effect is smaller for firms with … no CDS and junk debt, where bank monitoring is most valuable. It is unlikely that firms with bank debt are riskier …

efficiency (governance monitoring). Overall, our findings highlight the important role of regulatory settings in shaping the …