This study investigates the bank competition-stability nexus using a unique regulatory dataset provided by the Deutsche Bundesbank over the period 1994 to 2010. First, we use outright bank defaults as the most direct measure of bank risk available and contrast the results to weaker forms of bank...

This paper investigates how marketing mix strategies' design affects customer value creation. The paper presents the results of empirical research conducted through a questionnaire that aims to show and determine which elements are key in choosing a bank, the extent to which branches and digital...

This paper empirically investigates the impact of the first announcement of TARP, the announcement of revised TARP, respective capital infusions under TARP-CPP and capital repayments on changes in shareholder value and the risk exposure of supported U.S. banks. Our analysis reveals a light and a...

We analyze the reaction of European bank CDS spreads in response to the SIFI-regulation. Our results suggest that new regulation prepared by the FSB did not succeed in lowering bail-out expectations for the targeted banks. The findings show an overall decrease in CDS spreads and hence indicating...

While stock market expectations are among the most important primitives of portfolio choice models, their measurement has proved challenging for some respondents. We argue that the magnitude of measurement error in subjective expectations can be used as an indicator of the degree to which...

Ownership takeovers often follow complex strategies where the control of the target firm is acquired through a sequence of independent contracts. We study the role of capital gain taxes on the contract structure and on the method of finance of merger and acquisitions (M&As). We find that capital...

In past years, the most common approaches for deriving early-warning models belong to the family of binary-choice methods, which have been coupled with a separate loss function to optimize model signals based on policymakers preferences. The evidence in this paper shows that early-warning models...

The fractional probit (or fractional logit) model is used when the outcome variable is a fractional response variable, i.e. a variable taking a value between zero and one. In case of excess zeros, the fractional probit model might not be the optimal modeling device since this model does not...

Using Chinese customs data for estimating a discrete choice model between potential export destinations, we present evidence for sequential export investment decisions of exporters driven by search and learning processes in foreign markets. Using a fixed effects conditional logit model, we...

This paper explores the problems associated with the location choice of newly created establishments at the aggregate level. Much work has been done in this domain, however, several issues arise when analyzing involved phenomena, which scholars have yet to fully explore: 1) addressing the excess...