Internal Capital Markets and Corporate Politics in a Banking Group

• 成果类型: Article
• 署名作者: Cremers, K. J. Martijn; Huang, Rocco; Sautner, Zacharias
• 署名单位: University of Amsterdam; Michigan State University; University of Pennsylvania; Yale University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhq121
• 发表日期: 2011
• 页码: 358
• 关键词: cash flow sensitivities; Firm value; OWNERSHIP; INVESTMENT

摘要

We analyze proprietary internal capital allocation data from a large retail banking group consisting of member banks and a headquarters organization. We find that capital allocations from headquarters compensate for deposit shortfalls on the bank level, suggesting that the headquarters offers deposit smoothing to member banks. We then analyze how the distribution of influence within the group relates to capital allocations and lending behavior. More influential banks are allocated more funds from headquarters, and their loan growth is less sensitive to their deposit base. The effects of influence are stronger if banks have a greater demand for deposit smoothing. (JEL G21, G31, G32)