ARIFF, MOHAMED; LAMBA, ASJEET S. - In: International Review of Finance 6 (2006) 3-4, pp. 177-194
US banks making prime rate revisions are known to suffer stock price declines, which is consistent with the Stiglitz-Weiss adverse selection theory, given the relative stickiness of interest rates. If banks suffer price declines, then why are some banks consistent leaders when revising prime...