to be held on bank portfolios, rather than sold. I measure the capital ratio (the inverse of the leverage ratio, defined … as equity divided by asset value) for each bank at the time of each loan's origination. After controlling for both bank … results are robust to an instrumental variables strategy for predicting bank capital, a wide range of measures of bank capital …

empirical support. We conclude that bank equity is not socially expensive, and that high leverage at the levels allowed, for … makes banking inefficient. Better capitalized banks suffer fewer distortions in lending decisions and would perform better …

equity and CDS prices. We provide new evidence on how banking sector fragmentation and sovereign-bank linkages evolved over …-stage fixed-effects quantile approach, which explicitly links bank interconnectedness to systemic risk contributions. The …

sovereigns during the period from 2006 through 2013, utilizing both equity and CDS prices. We provide new evidence on how banking … sector fragmentation and sovereign-bank linkages evolved over the European sovereign debt crisis, and how they are reflected …

We investigate the effect of managerial incentives and market power on bank risk-taking for a sample of 212 large US … bank holding companies over 1997-2004 (i.e. 1,534 observations). Bank managers have incentives to prefer less risk while … bank shareholders have preference for ‘excessive' risk. Likewise, the market power is the centre piece of any bank …

We investigate the effects of managerial incentives and market power on bank risk-taking for a sample of 212 large U ….S. bank holding companies over the period 1997-2004 (comprising 1,534 observations). Bank managers have incentives to prefer … less risk, while bank shareholders prefer higher risk, and market power is the centerpiece of any bank regulation. However …

We present a model where bank assets are a portfolio of risky debt claims and analyze stockholders' risk …-taking behavior while considering the strategic interaction between debtors and creditors. We find that: (1) as the leverage of a bank … demonstrates that an increase in comovement of a loan portfolio increases the bank's cost of default directly, we find that the …

banking corporate governance: risk management, ownership structure and executive compensation of banks. Best practices for …