Evidence on the financial characteristics of banks that do and do not use derivatives

Quarterly Review of Economics and Finance

Volumn 40, Issue 4, 2000, Pages 431-449

  Sinkey Jr , Joseph F ^a   Carter, David A ^b  

^a UNIVERSITY OF GEORGIA   (United States)

^b OKLAHOMA STATE UNIVERSITY   (United States)

Author keywords

Banking; Derivatives

Indexed keywords

EID: 0042687990     PISSN: 10629769     EISSN: None     Source Type: Journal    
DOI: 10.1016/s1062-9769(00)00050-8     Document Type: Article

References (41)

1. Albertson R. Derivatives in banks the six ironies . Journal of Applied Corporate Finance. 7:1994;52-54.
2. Amemiya T. Tobit models a survey . Journal of Econometrics. 24:1984;3-61.
3. Bierwag G.O., Kaufman G.G. Duration gap for financial institutions. Financial Analysts Journal. 41:1985;68-71.
4. Block S.B., Gallagher T.J. The use of interest-rate futures and options by corporate financial managers. Financial Management. 15:1986;73-78.
5. Booth J.R., Smith R.L., Stolz R.W. Use of interest-rate futures by financial institutions. Journal of Bank Research. 15:1984;15-20.
6. Carter D.A., Sinkey J.F. Jr. The use of interest-rate derivatives by end-users the case of large community banks . Journal of Financial Services Research. 14:1998;17-34.
7. Chorafas D.N., Steinmann H. Off-Balance Sheet Financial Instruments Maximizing Profitability and Managing Risk in Financial Services . 1994;Probus, Chicago.
8. Colquitt L.L., Hoyt R.E. Determinants of corporate hedging behavior evidence from the life-insurance industry . Journal of Risk and Insurance. 64:1997;649-671.
9. Demsetz R., Strahan P.E. Diversification, size, and risk at bank-holding companies. Journal of Money, Credit, and Banking. 29:1997;300-313.
10. Esty, B., Tufano, P., & Headley, J. (1994). Banc One Corporation: asset and liability management. Journal of Applied Corporate Finance, 7, 33-51 plus "Commentaries on Banc One's Hedging Strategy," pp. 52-62 and "Postscript," pp. 63-65.
11. Esty, B., Tufano, P., & Headley, J. (1994). Banc One Corporation: asset and liability management. Journal of Applied Corporate Finance, 7, 33-51 plus "Commentaries on Banc One's Hedging Strategy," pp. 52-62 and "Postscript," pp. 63-65.
12. Esty, B., Tufano, P., & Headley, J. (1994). Banc One Corporation: asset and liability management. Journal of Applied Corporate Finance, 7, 33-51 plus "Commentaries on Banc One's Hedging Strategy," pp. 52-62 and "Postscript," pp. 63-65.
13. Flannery M.J., James C.M. The effect of interest-rate changes on the common stock returns of financial institutions. Journal of Finance. 39:1984;1141-1153.
14. Géczy C., Minton B.A., Schrand C. Why firms use currency derivatives. Journal of Finance. 52:1997;1323-1354.
15. Gorton G., Rosen R. Corporate control, portfolio choice, and the decline of banking. Journal of Finance. 50:1995;1377-1420.
16. Gunther, J. W., & Siems, T. F. (1996). The likelihood and extent of banks' involvement with interest-rate derivatives as end-users. Federal Reserve Bank of Dallas working paper.
17. Heisler E. Comments on Banc One. Journal of Applied Corporate Finance. 7:1994;59-60.
18. Hunter W., Timme S. Technical change, organization form, and the structure of bank production. Journal of Money, Credit and Banking. 18:1986;152-166.
19. Kane E.J., Malkiel B.G. Bank portfolio allocation, deposit variability, and the availability doctrine. Quarterly Journal of Economics. 79:1965;113-134.
20. Kim S.-H., Koppenhaver G.D. An empirical analysis of bank interest-rate swaps. Journal of Financial Services Research. 7:1993;57-74.
21. King, R. T. Jr., & Lipin, S. (1994). New profit center: corporate banking, given up for dead, is reinventing itself. The Wall Street Journal (January 31), pp. 1+.
22. Koppenhaver G.D. An empirical analysis of bank hedging in futures markets. Journal of Futures Markets. 10:1990;1-12.
23. Kwan S.H. Re-examination of interest-rate sensitivity of commercial bank stock returns using a random-coefficient model. Journal of Financial Services Research. 5:1991;61-76.
24. Lipin, S., Granito, B. D., & Scism, L. (1994). Fancy footwork: Bankers Trust thrives pitching derivatives, but climate is shifting. Wall Street Journal (22 April): A1.
25. Maddala G.S. Limited-dependent and qualitative variables in econometrics. 1983;Cambridge University Press, Cambridge, UK.
26. Maddala, G. S., & Nelson, F. (1983). Specification errors in limited dependent variable models. NBER Working Paper, no. 96.
27. Merton R., Bodie Z. On the management of financial guarantees. Financial Management. 21:1992;87-109.
28. Mian S.L. Evidence on corporate hedging policy. Journal of Financial and Quantitative Analysis. 31:1996;419-439.
29. Nance D.R., Smith C.W. Jr, Smithson C.W. On the determinants of corporate hedging. Journal of Finance. 48:1993;267-284.
30. OCC. (1999). OCC Bank Derivatives Report Fourth Quarter 1999. Washington, D.C.: Office of the Comptroller of the Currency, (http://www.occ.treas.gov/deriv/deriv.htm).
31. Schrand C.M., Unal H. Hedging and coordinated risk management evidence from thrift conversions . Journal of Finance. 53:1998;979-1013.
32. Sinkey J.F. Jr. Commercial Bank Financial Management. 1998;Prentice-Hall, Upper Saddle River, NJ.
33. Sinkey, J. F., Jr., & Carter, D. A. (1994). The derivatives Activities of U.S. commercial banks. In Proceedings of the 30th Annual Conference on Bank Structure and Competition (pp. 165-185). Chicago: Federal Reserve Bank of Chicago.
34. Sinkey, J. F., Jr., & Carter, D. A. (1997). Derivatives in U.S. banking: theory, practice, and empirical evidence. In B. Schachter (Ed.). Advances in Finance, Investment and Banking: Derivatives, Regulation and Banking (pp. 41-78). Amsterdam: Elsevier Science B. V.
35. Sinkey J.F. Jr, Carter D.A. The reaction of bank stock prices to news of derivatives losses by corporate clients. Journal of Banking and Finance. 23:1999;1725-1943.
36. Smith, C. W., Jr. (1993). Risk management in banking. In R. J. Schwartz & C. W. Smith, Jr. (Eds.). Advanced Strategies in Financial Risk Management (pp. 147-162). Englewood Cliffs, NJ: New York Institute of Finance.
37. Smith C.W. Jr, Stulz R.M. The determinants of firms' hedging policies. Journal of Financial and Quantitative Analysis. 20:1985;391-405.
38. Tobin J. Estimation of relationships for limited dependent variables. Econometrica. 26:1958;24-36.
39. Tufano P. Financial innovation and first mover advantages. Journal of Financial Economics. 25:1989;213-240.
40. Warner J.B. Bankruptcy costs some evidence . Journal of Finance. 32:1977;337-347.
41. Wells, R. (1994). Derivatives boom: growth is eye-popping at large banks, brokerages. Associated Press (22 April).