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On risk, leverage and banks : do highly leveraged banks take on excessive risk?

Koudstaal, Martin; Wijnbergen, Sweder van - 2012

Persistent link: https://www.econbiz.de/10009722695

Capital Structure and Performance in the US Banking Industry

Saona, Paolo - 2014

Agency theory predicts that leverage affects agency costs and thereby the firm's influence will be influenced. The goal of the paper is to examine the profitability-capital relationship for the US banks using an unbalanced panel over the period 1995-2007. In our model we used a combination of...

Persistent link: https://www.econbiz.de/10013069798

Determinants of Optimal Capital Structure and Speed of Adjustment : Evidence From the U.S. ICT Sector

Canarella, Giorgio - 2019

We employ a dynamic adjustment model (Flannery and Rangan, 2006) to investigate the determinants of capital structure and speed of adjustment (Drobetz and Wanzenried, 2006) in a panel of 85 U.S. ICT firms over the years 1990 to 2013. We estimate the capital structure using a wide range of...

Persistent link: https://www.econbiz.de/10012890372

Leverage and the Cost of Capital for U.S. Banks

Clark, Brian J. - 2018

We examine the relationship between leverage and the weighted-average cost of capital (WACC) for U.S. banks. Ignoring tax effects, leverage appears to have virtually no impact on the WACCs of too-big-to-fail banks. We find significant differences in this relationship across different...

Persistent link: https://www.econbiz.de/10012937794

How commercial banks adjust capital ratios : empirical evidence from the USA?

Abbas, Faisal; Ali, Shoaib; Yousaf, Imran; Rizwan, Sohail - In: Cogent business & management 7 (2020) 1, pp. 1-18

This study examines the speed of adjustment of the leverage and regulatory capital ratios between 2002 and 2018 for large commercial banks of the USA. The study applies a two-step system GMM technique to obtain the speed of adjustment. The results prove that higher-quality capital requires...

Persistent link: https://www.econbiz.de/10012655130

The Leverage Ratchet Effect

Admati, Anat R.; DeMarzo, Peter M.; Hellwig, Martin; … - 2013

Firms' inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm value. Shareholders would instead choose to increase leverage...

Persistent link: https://www.econbiz.de/10010205870

Diminishing American Power : The US - China Trade War, Sanctions, and Coronavirus

Taskinsoy, John - 2020

ambition, or COVID-19 induced recession; it is China's fast acceleration in becoming a game changer in the world order that the …

Persistent link: https://www.econbiz.de/10012825152

Testimony of John C. Coates IV Before the U.S. Senate Subcommittee on Securities, Insurance and Investment on Proposed Securities Law Reforms

Coates, IV, John C. - 2011

Amid an economic downturn caused in part by financial deregulation, it is odd to most people outside the Beltway that Congress should be actively considering (and indeed have passed in the House) a raft of proposal for more financial deregulation. Yet the politics for both parties require...

Persistent link: https://www.econbiz.de/10013117441

Bankers’ Pay after the 2008 Crisis : Regulatory Reforms in the US and the EU

Ferrarini, Guido - 2013

We examine the political dynamics which led to the codification of the Principles and Standards for sound compensation practices at financial institutions at international (G 20) level and to their subsequent implementation on both sides of the Atlantic. We show that the regulation of bankers'...

Persistent link: https://www.econbiz.de/10013091649

Why do borrowers pledge collateral? : New empirical evidence on the role of asymmetric information

Berger, Allen N.; Espinosa-Vega, Marco A.; Frame, W. Scott - 2007 - Rev.

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

Persistent link: https://www.econbiz.de/10003730563

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