We empirically examine the impact of economic policy uncertainty (EPU) on banks’ funding structure (FUD). Using an extensive dataset of U.S. bank holding companies, we find that high policy uncertainty strengthens banks’ FUD. For banks with a pre-existing low FUD, an increase in EPU raises...

Earnings management can be either opportunistic, adding noise to reported earnings, or informative about a firm's underlying economic performance, adding valuable information to financial reports. This study examines earnings management in banks with differing levels of information asymmetry....

Our results show that US banks with a relatively high share of non-interest income become riskier with a moving toward non-interest-generating activities, especially activities from investment banking, proprietary trading, etc. The findings also prove, although weakly, that banks with a...

Using a large panel of US bank holding companies from 2001 to 2015, this study investigate how depositors respond to the bank's discretionary behaviors. We document evidence of a higher deposit rates for banks that engage more in earnings management, suggesting the evidence of market discipline....

We examine the determinants of bank capital structure using a sample of 569 large and publicly traded banks in 26 developed and emerging countries over the period 2004-2013. We use simultaneously two notions of capital ratio (risk- and non-risk based capital ratio) to provide a more...

Does dividend policy increase or decrease the bank opaqueness? Under Dividend-Transparency Channel, paying dividends involves banks to greater discipline from the markets due to external financing, and reduces private benefits of control, leading to lower earnings management concerns. Under...