Risk-shifting window dressing and a preferred habitat for liquidity have been offered as possible explanations as to why US money market rates are higher before the year-end than afterwards. The two hypotheses differ in the timing of the rate decline at the year-end and the evidence on the...

Purpose – The purpose of the paper is to determine if banks that solved the Y2K problem early created value for their shareholders. Design/methodology/approach – The method of analysis is an event study. Findings – The primary finding of the analysis is that solving the Y2K problem did not...