Jones, Jeffrey S.; Lee, Wayne Y.; Yeager, Timothy J. - In: Journal of Financial Intermediation 21 (2012) 3, pp. 383-408
Opacity fosters price contagion that exacerbates the speculative cycles of bubbles and crashes that create financial instability. We find that banks with larger investments in opaque assets benefitted more from intra-industry revaluations associated with announcements of mergers in the period...