Interest rate risk is the exposure of a bank's financial condition to adverse movements in interest rates. Changes in … interest rates affect a bank's earnings by changing its net interest income and also affect the underlying value of the bank … for assessing a bank's interest rate risk exposure: earnings perspective and economic value perspective. Changes in banks …

We examine whether executive stock options can induce excessive risk taking by managers in firms' security issue … with executive stock options aligning the interests of managers and shareholders; rather, it supports the hypothesis that … stock options sometimes make managers take on too much risk and in the process pursue suboptimal capital structure policies …

investors to be less prone to run individual banks, but runs will be systemic. In addition, we show that bank runs are …

This paper investigates whether monitoring by bank lenders affects CEO incentives of borrowing firms. We find that an … increase in bank monitoring incentives significantly reduce the sensitivity of CEO wealth to stock return volatility (Vega …). The results are more profound when bank lenders are more powerful and reputable and have a prior lending relationship with …

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

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

investor worries over whether the bank will experience funding or solvency problems. In line with this we find that calm … robustness of a bank when it comes to risks that affect both the solvency and liquidity situation of the bank. …

In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers … relationship bank if the firm is unable to find alternative lenders. This paper explores the differential effects of this trade … the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …

default risk and performance in bank holding companies (BHCs) during the recent credit crisis. Using a sample of 371 BHCs, we … bank in BHCs that paid their CEOs relatively higher inside debt …

determined by (i) the specific time period (crisis vs. non-crisis) and (ii) the balance sheet strength of the firm's main bank in … terms of bank capital. Results of difference-in-differences estimations utilizing three time periods: 2002-2006 (pre …