Evidence of bank market discipline in subordinated debenture yields: 1983-1991

Journal of Finance

Volumn 51, Issue 4, 1996, Pages 1347-1377

  Flannery, Mark J ^a   Sorescu, Sorin M ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0037647368     PISSN: 00221082     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1540-6261.1996.tb04072.x     Document Type: Article

References (29)

1. Avery, R., T. Belton, and M. Goldberg, 1988, Market discipline in regulating bank risk: New evidence from the capital markets, Journal of Money, Credit, and Banking 20, 597-610.
2. American Bankers Association, 1991, A response to the concerns about the final settlement payment approach, submitted as part of the written testimony of William H. Brandon, Jr. at Hearings on the economic implication of the "Too Big to Fail" policy, before the Subcommittee on Economic Stabilization of the Committee on Banking, Finance and Urban Affairs, House of Representatives, 102 Congress (First Session), May 9, 1991.
3. Baer, H., and E. Brewer, 1986, Uninsured deposits as a source of market discipline: Some new evidence, Federal Reserve Bank of Chicago Economic Perspectives (September/October), 23-31.
4. Black, F., and J. Cox, 1976, Valuing corporate securities: Some effects of bond indentures, Journal of Finance 31, 351-367.
5. Cargill, T. F., 1989, CAMEL ratings and the CD market, Journal of Financial Services Research, 347-358.
6. Carrington, Tim, 1984, U.S. won't let 11 biggest banks in nation fail, Wall Street Journal, September 20, p. A2.
7. Cook, D. O., and L. J. Spellman, 1994, Repudiation risk and restitution costs: Toward understanding premiums on insured deposits, Journal of Money, Credit, and Banking 26, 439-459.
8. Ellis, D. M., and M. J. Flannery, 1992, Risk premia in large CD rates: Time series evidence on market discipline, Journal of Monetary Economics 30, 481-502.
9. Flannery, M., and C. James, 1984a, Market evidence on the effective maturity of bank assets and liabilities, Journal of Money, Credit and Banking 16, 435-445.
10. Flannery, M., and C. James, 1984b, The effect of interest rate changes on the common stock return of financial institutions, Journal of Finance 39, 1141-1153.
11. Flood, M. D., 1992, The great deposit insurance debate, Federal Reserve Bank of St. Louis Review 74, 51-77.
12. Gilbert, R. A., 1990, Market discipline of bank risk: Theory and evidence, Federal Reserve Bank of St. Louis Review 72, 3-18.
13. Giliberto, Michael, and David Ling, 1992, An empirical investigation of the contingent-claims approach to pricing residential mortgage debt, Journal of the American Real Estate and Urban Economics Association 20, 393-426.
14. Gorton, G., and A. Santomero, 1990, Market discipline and bank subordinated debt, Journal of Money, Credit, and Banking 22, 119-128.
15. Hannan, T. H., and G. A. Hanweck, 1988, Bank insolvency risk and the market for large certificates of deposit, Journal of Money, Credit, and Banking 20, 203-212.
16. Harvard Law Review, 1991, Unsecured creditors of failed banks: It's not a wonderful life, Harvard Law Review 104, 1052-1071.
17. James, C. M., 1988, The use of loan sales and standby letters of credit by commercial banks, Journal of Monetary Economics 22, 395-422.
18. James, C. M., 1990, Heterogeneous creditors and the market value of bank LDC loan portfolios, Journal of Monetary Economics 25, 325-346.
19. Kaufman, G. G., 1990, Are some banks too large to fail? Myth and reality, Contemporary Policy Issues 8, 1-14.
20. Kaufman, G. G., and G. J. Benston, 1993, The intellectual history of the Federal Deposit Insurance Corporation Improvement Act of 1991, in Kaufman and Litan, eds.: Assessing bank reform: FDICIA one year later (The Brookings Institution, Washington D.C.), 19-32.
21. Keeley, M. C., 1990, Deposit insurance, risk, and market power in banking, American Economic Review 80, 1183-1200.
22. Merton, R. C., 1974, On the pricing of corporate debt: The risk structure of interest rates, Journal of Finance 29, 449-470.
23. O'Hara, M., and W. Shaw, 1990, Deposit insurance and wealth effects: The value of being "too big to fail," Journal of Finance 45, 1587-1600.
24. Randall, Richard E., 1994, The implications of financial cycles for subordinated debt proposals, in The Declining(?) Role of Banking, Proceedings of the Thirtieth Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 274-287.
25. Ronn, E., and A. Verma, 1986, Pricing risk-adjusted deposit insurance: An option-based model, Journal of Finance 41, 871-895.
26. Shaw, K. D., 1988, Who's insuring what for whom: First Republic's lessons, American Banker, April 8, p. 4.
27. Sprague, I. H., 1986, Bailout: An insider's account of bank failures and rescues, (Basic Books, New York).
28. U.S. Government Accounting Office, 1994, 1992 Bank Resolutions, (May 1994).
29. Warga, A., 1995, A fixed income database, Fixed income research program, University of Wisconsin-Milwaukee.