It is well-known that financial markets respond quickly to the announcements of changes in the Federal Funds target rate. This paper examines the stock price reaction of individual stocks listed under the Dow Jones Industrial Average to Federal Funds target rate change announcements using daily...

This study investigates how bank characteristics affect bank stock reactions to changes in the federal funds rate target. Using a dataset of all publicly listed banks of the United States from October 1988 through December 2007, both our regression analysis and categorical analysis provide...