Recently, there has been a marked increase in the number of banks choosing to operate as Subchapter-S Corporations. The apparent motivation is tax savings as Subchapter-S firms do not pay federal income taxes on income at the firm level, but transfer income to stockholders where it is taxed as...

A matched sample of black-owned and white-owned banks is tested for lending discrimination based on race. A simple regulatory model and an enhanced regulatory model are applied to conventional mortgage loan applications in 1992 and 1993. The regulatory model uses readily available data to bank...

The concepts of market efficiency and portfolio diversification are easy to understand, but it is difficult for some to comprehend the relation of risk and return. A good way to teach these concepts uses the Wall Street Journal's dartboard contest, where dart throws and professionals pick only...

We investigate the efficacy of government guarantee programs for mortgage loans made on tribal lands by comparing lending outcomes for White applicants and Native Americans (NAs) living on- and off-reservation lands. Simultaneous equations models with the loan-to-income ratio endogenous indicate...

We generalize traditional event-study techniques to allow for event-induced parameter shifts, shifting variances, and firm-specific event periods. Our method, which nests traditional methods, also permits systematic risk to change gradually during the event period and exit the period at higher...

The intraday literature suggests that returns, variances, and volume form an intraday reverse-J pattern. Two competing theories explain the observed patterns: private information about future security prices and trading stoppages. The federal funds market allows a unique opportunity to study the...

We analyze Fed funds rate changes in GARCH-in-mean (GARCH-M) models and find: (a) daily rate change and variance patterns differ with the timing of the rate observation, but that all patterns are generally consistent with optimal reserve account management; (b) Fed funds daily and intraday...

Choosing appropriate peer groups for bank research is important to evaluate safety and soundness, merger effects, and overall performance. We use commercial bank financial statements with common size variables as the inputs to a cluster analysis model to identify clusters or groups of banks with...

We generalize traditional event-study techniques to allow for event-induced parameter shifts, shifting variances, and firm-specific event periods. Our method, which nests traditional methods, also permits systematic risk to change gradually during the event period and exit the period at higher...

Determinants of yield spreads vary with market conditions and available information, which has implications for debt pricing models. After the bailout of Long Term Capital Management (LTCM) in September 1998, important firm-specific default risk measures, such as leverage, are not significant...