Bank Capital and Value in the Cross-Section

• 成果类型: Article
• 署名作者: Mehran, Hamid; Thakor, Anjan
• 署名单位: Washington University (WUSTL); European Corporate Governance Institute; Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhq022
• 发表日期: 2011
• 页码: 1019
• 关键词: REQUIREMENTS; COMPETITION; FIRMS; RISK; INFORMATION; fragility; finance; cost

摘要

We develop a dynamic model of bank capital structure in an acquisitions context which predicts: (i) total bank value and the bank's equity capital are positively correlated in the cross-section, and (ii) the various components of bank value are also positively cross-sectionally related to bank capital. Our empirical tests provide strong support for these predictions. The results are robust to a variety of alternative explanations-growth prospects, desire to acquire toe-hold positions, desire of capital-starved acquirers to buy capital-rich targets, market timing, pecking order, the effect of banks with binding capital requirements, Too Big To Fail, target profitability, risk, and mechanical effects. (JEL G21, G28, G32, G34)