Showing 1 - 10 of 2,355
Persistent link: https://www.econbiz.de/10012419197
find evidence of two faces of equity investment - dichotomous capital strategies for maximizing value. At banks with higher …-valued investment opportunities, a marginal increase in their equity capital ratio is associated with better financial performance …, while at banks with lower-valued investment opportunities, a marginal decrease in their equity capital ratio is associated …
Persistent link: https://www.econbiz.de/10011582019
The financial industry has been struggling with widespread misconduct and public mistrust. Here we argue that the lack of trust into the financial industry may stem from the selection of subjects with little, if any, trustworthiness into the financial industry. We identify the social preferences...
Persistent link: https://www.econbiz.de/10012263422
The financial industry has been struggling with widespread misconduct and public mistrust. Here we argue that the lack of trust into the financial industry may stem from the selection of subjects with little, if any, trustworthiness into the financial industry. We identify the social preferences...
Persistent link: https://www.econbiz.de/10012265867
This paper uses a series of experiments with commercial bank loan officers to test the effect of performance incentives on risk-assessment and lending decisions. We first show that, while high-powered incentives lead to greater screening effort and more profitable lending, their power is muted...
Persistent link: https://www.econbiz.de/10013104111
We conduct an experiment with commercial bank loan officers to test how performance compensation affects risk …
Persistent link: https://www.econbiz.de/10013055942
This paper experimentally investigates how fair value measurements of financial instruments affect the decision of nonprofessional investors to invest in a bank’s shares. Specifically, we assess how investors respond to variations in net income resulting from fair value adjustments in trading...
Persistent link: https://www.econbiz.de/10010357828
We study the attitudes of junior and senior employees towards strategic uncertainty and competition, by means of a market entry game inspired by Camerer and Lovallo (1999). Seniors exhibit higher entry rates compared to juniors, especially when earnings depend on relative performance. This...
Persistent link: https://www.econbiz.de/10013104678
We study the attitudes of junior and senior employees towards strategic uncertainty and competition, by means of a market entry game inspired by Camerer and Lovallo (1999). Seniors exhibit higher entry rates compared to juniors, especially when earnings depend on relative performance. This...
Persistent link: https://www.econbiz.de/10013105828
The financial industry has been struggling with widespread misconduct and public mistrust. Here we argue that the lack of trust into the financial industry may stem from the selection of subjects with little, if any, trustworthiness into the financial industry. We identify the social preferences...
Persistent link: https://www.econbiz.de/10012270562