In theory commercial banks exist to resolve asymmetric information problems in credit markets. Because small business firms have much greater information problems than large firms, it is not surprising that they depend almost entirely on banks for external finance needs. Unfortunately, little is...

This dissertation provides evidence on the risk factors that are priced in bankequities. Alternative empirical models with precedent in the nonfinancial asset pricingliterature are tested, including the single-factor Capital Asset Pricing Model (CAPM),three-factor Fama-French model, and...

Purpose: The purpose of this paper is to show that distinguishing between gross and net tax shields arising from interest deductions is important to firm valuation. The distinction affects the interpretation but not valuation of tax shields for the famous Miller’s (1977) model with corporate...