Are the Largest Banks Valued More Highly?

• 成果类型: Article
• 署名作者: Minton, Bernadette A.; Stulz, Rene M.; Taboada, Alvaro G.
• 署名单位: University System of Ohio; Ohio State University; National Bureau of Economic Research; European Corporate Governance Institute; Mississippi State University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz036
• 发表日期: 2019
• 页码: 4604
• 关键词: TOO BIG; diversification; RISK; valuation; returns; size

摘要

Some argue too-big-to-fail (TBTF) status increases the value of the largest banks. In contrast, we find that the value of the largest banks is negatively related to asset size in normal times, but much less so during the crisis. Further, shareholders lose when large banks cross a TBTF threshold through acquisitions. The negative relation between bank value and bank size for the largest banks cannot be explained by differences in ROA, ROE, equity volatility, tail risk, distress risk, or equity discount rates, but it can be partly explained by the market's discounting of trading activities.