Gropp, Reint; Heider, Florian - In: Review of Finance 14 (2010) 4, pp. 587-622
The paper shows that mispriced deposit insurance and capital regulation were of second-order importance in determining the capital structure of large U.S. and European banks during 1991 to 2004. Instead, standard cross-sectional determinants of non-financial firms' leverage carry over to banks,...