We empirically investigate whether bank bondholders value bank managerial ability, measured as risk-return efficiency, when pricing bond spreads. We find, based on a sample of 1,924 bonds issued by 67 European listed banks, for the period 2002-2011, evidence that bank managerial ability affects...

We assess the extent to which stock market information can be used to estimate leading indicators of bank financial distress. We specify a logit early warning model, designed for European banks, which tests if market based indicators add predictive value to models relying on accounting data. We...