-
作者：Allen, Franklin; Carletti, Elena; Marquez, Robert
作者单位：University of Pennsylvania; European University Institute; Boston University
摘要：Empirical evidence suggests that banks hold capital in excess of regulatory minimums. This did not prevent the financial crisis and underlines the importance of understanding bank capital determination. Market discipline is one of the forces that induces banks to hold positive capital. The literature has focused on the liability side. We develop a simple theory based on monitoring to show that discipline from the asset side can also be important. In perfectly competitive markets, banks can fin...
-
作者：Brown, Craig O.; Dinc, I. Serdar
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Massachusetts Institute of Technology (MIT)
摘要：This article studies bank failures in twenty-one emerging market countries in the 1990s. By using a competing risk hazard model for bank survival, we show that a government is less likely to take over or close a failing bank if the banking system is weak. This Too-Many-to-Fail effect is robust to controlling for macroeconomic factors, financial crises, the Too-Big-to-Fail effect, domestic financial development, and concerns due to systemic risk and information spillovers. The article also show...
-
作者：Bharath, Sreedhar T.; Dahiya, Sandeep; Saunders, Anthony; Srinivasan, Anand
作者单位：University of Michigan System; University of Michigan; Georgetown University; New York University; National University of Singapore; National University of Singapore
摘要：We find that repeated borrowing from the same lender translates into a 10-17 bps lowering of loan spreads and that relationships are especially valuable when borrower transparency is low. These results hold using multiple approaches (propensity score matching, instrumental variables, and treatment effects model) that control for the endogeneity of relationships. We also provide a demarcation line between relationship and transactional lending. Spreads charged for relationship loans and nonrela...
-
作者：Giannetti, Mariassunta; Burkart, Mike; Ellingsen, Tore
作者单位：Stockholm School of Economics
摘要：We relate trade credit to product characteristics and aspects of bank-firm relationships and document three main empirical regularities. First, the use of trade credit is associated with the nature of the transacted good. In particular, suppliers of differentiated products and services have larger accounts receivable than suppliers of standardized goods and firms buying more services receive cheaper trade credit for longer periods. Second, firms receiving trade credit secure financing from rel...
-
作者：Erel, Isil
作者单位：University System of Ohio; Ohio State University
摘要：Bank mergers can increase or decrease loan spreads, depending on whether the increased market power outweighs efficiency gains. Using proprietary loan-level data for U.S. commercial banks, I find that, on average, mergers reduce loan spreads, with the magnitude of the reduction being larger when postmerger cost savings increase. My results suggest that the relation between spreads and the extent of the market overlap between merging banks is nonmonotonic. The market overlap increases cost savi...
-
作者：Iyer, Rajkamal; Peydro, Jose-Luis
作者单位：European Central Bank; University of Amsterdam
摘要：This article tests financial contagion due to interbank linkages. For identification, we exploit an idiosyncratic, sudden shock caused by a large-bank failure in conjunction with detailed data on interbank exposures. First, we find robust evidence that higher interbank exposure to the failed bank leads to large deposit withdrawals. Second, the magnitude of contagion is higher for banks with weaker fundamentals. Third, interbank linkages among surviving banks further propagate the shock. Finall...
-
作者：Degryse, Hans; Masschelein, Nancy; Mitchell, Janet
作者单位：Tilburg University
摘要：Assessing the impacts of bank mergers on small firms requires separating borrowers with single versus multiple banking relationships and distinguishing the three alternatives of staying, dropping, and switching of relationships. Single-relationship borrowers who switch to another bank following a merger will be less harmed than those whose relationship is dropped and not replaced. Using Belgian data, we find that single-relationship borrowers of target banks are more likely than other borrower...
-
作者：Dass, Nishant; Massa, Massimo
作者单位：University System of Georgia; Georgia Institute of Technology; INSEAD Business School
摘要：Commercial banks acquire inside information about the firms they lend to. We study the impact of this informationally privileged position on the borrowing firm using a broad panel of U.S. firms over the 1993-2004 period. We measure the strength of the bank-firm relationship by bank-firm proximity, size of the loan, and the lender's insider potential. We show that a stronger relationship, by inducing better monitoring, improves the borrower's corporate governance. Simultaneously, it makes the b...
-
作者：Mehran, Hamid; Thakor, Anjan
作者单位：Washington University (WUSTL); European Corporate Governance Institute; Federal Reserve System - USA; Federal Reserve Bank - New York
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 o...
-
作者：Allen, Franklin; Fulghieri, Paolo; Mehran, Hamid
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of Pennsylvania; Federal Reserve System - USA; Federal Reserve Bank - New York
摘要：The critical role played by financial institutions in the recent financial crises has generated renewed interest on the corporate finance of the banking firm and the impact of the banking sector on the real economy. This paper introduces the special issue of the Review of Financial Studies dedicated to The Value of Bank Capital and the Structure of the Banking Industry. The special issue combines papers presented at the conference on Corporate Finance of Financial Intermediaries in September 2...
