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investors (PCBs). This can be attributed to severe political intervention and weak incentives to follow prudent bank management …
Persistent link: https://www.econbiz.de/10013065926
We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and …
Persistent link: https://www.econbiz.de/10013066422
This paper investigates (1) how the composition of executive compensation is related to a bank's incentive to take … severe moral hazard behavior, and (3) how the relation between bank executive compensation and risk taking changes before and … during the recent financial crisis. We find that bank risk measured by the Z-score and the volatility of stock returns …
Persistent link: https://www.econbiz.de/10013069368
We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We find that most banks do not experience funding declines...
Persistent link: https://www.econbiz.de/10013069667
period 1995-2007. In our model we used a combination of bank-based and industry-specific variables. Besides using the GMM … that there are not economies of scale if we consider the size of the bank. The results are robust in a number of methods of …
Persistent link: https://www.econbiz.de/10013069798
To be effective, programs of regulatory reform must address the incentive conflicts that intensify financial risk-taking and undermine government insolvency detection and crisis management. Subsidies to risk taking that large institutions extract from the financial safety net encourage managers...
Persistent link: https://www.econbiz.de/10013070578
dependency between bank leverage and risk. Using a large international sample of banks this paper estimates the short and long … run effects of corporate income taxes (CIT) on bank capital structure and portfolio risk accounting for their simultaneous … in bank leverage and a 2-7 percentage point reduction in the average risk-weight of assets. While the estimated overall …
Persistent link: https://www.econbiz.de/10013071864
The roles of bank franchise value (“skin in the game”) and CEO ownership play in determining bank risk are studied for … large United States Bank Holding Companies. We find robust evidence of a U-shaped relationship between bank risk and each of … and CEO ownership increases so too does bank risk. Further, we find that low levels of franchise value combined with high …
Persistent link: https://www.econbiz.de/10013075912
Interest rate risk is the exposure of a bank's financial condition to adverse movements in interest rates. Changes in … interest rates affect a bank's earnings by changing its net interest income and also affect the underlying value of the bank … for assessing a bank's interest rate risk exposure: earnings perspective and economic value perspective. Changes in banks …
Persistent link: https://www.econbiz.de/10013112510
a broad panel of large US bank holding companies over the period 1997–2011, we find that both board size and independent … directors decrease bank performance. Although gender diversity improves bank performance in the pre-Sarbanes–Oxley Act (SOX … other sensitivity checks including alternative proxies for bank performance …
Persistent link: https://www.econbiz.de/10013112953