Traditionally, concerns about market concentration have focused on mispricing and the restriction of output relative to competitive markets. This type of loss is typically measured by the standard welfare triangle. The associated welfare losses usually motivate antitrust policy.<p> <p> This paper...</p></p>

In this paper we report results from a study, which explores the impact of quality on performance in the financial services industry. Although some disagreement exists, the operations management, economics and marketing literatures advocate a positive relationship between quality and financial...

This paper investigates the extent to which banks alter the timing and magnitude of transactions such as asset sales, loan loss accruals, pension settlements and securities issues in response to primary capital, tax, and earnings goals. The authors hypothesize that each year bank managers face a...

The relationship between risk and derivatives is especially important in banking since banks dominate most derivatives markets and, within banking, derivative holdings are concentrated at a few large banks. If large banks are using derivatives to increase risk, then recent losses on derivatives,...

The authors consider the problem of a risk-averse firm with limited liability. The firm has to select the size of its investment in a risky project. We show that the optimal exposure to risk of the limited liability firm is always larger than under full liability. Moreover, there exists a...

The paper focuses on the effects of claimant behavior, especially fraudulent claiming, in determining liability insurance costs. The theoretical perspective underlying the analysis is that the ease of filing a claim and the net potential payoff affect individuals' incentives to file claims....

This paper presents evidence that the traditional banking business of accepting deposits and making loans has declined significantly in the US in recent years. There has been a switch from directly held assets to pension funds and mutual funds. However, banks have maintained their position...

Intermediate Financial Structure<p> 1. In a number of Asian countries, commercial banks are already playing an important role in the corporate bond market as issuers, underwriters, investors, and guarantors. This reflects banks’ already dominant financial positions in their financial markets,...</p>

We examine the "marketability hypothesis," which states that stock splits enhance the attractiveness of shares to investors by restoring prices to a preferred trading range. We examine splits of mutual fund shares because they provide a clean testing ground for the marketability hypothesis,...