Testing for opaqueness in the European banking industry: Evidence from bond credit ratings

Journal of Financial Services Research

Volumn 30, Issue 3, 2006, Pages 287-309

  Iannotta, Giuliano ^a  

^a BOCCONI UNIVERSITY   (Italy)

Author keywords

Bank opaqueness; Bond credit ratings; European banking industry; Split ratings

Indexed keywords

EID: 33846359591     PISSN: 09208550     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10693-006-0420-y     Document Type: Article

References (33)

1. Allen F, Santomero AM (1998) The theory of financial intermediation. J Bank Financ 21:1461-1485
2. Allen F, Santomero AM (2001) What do financial intermediaries do? J Bank Financ 25:271-294
3. Basel Committee on Banking Supervision (2003) Public disclosures by banks: results of the 2001 disclosure survey (May)
4. Basel Committee on Banking Supervision (2004) The new Basel capital accord (June)
5. Berger AN, Herring RJ, Szegö GP (1995) The role of capital in financial institutions. J Bank Financ 19:393-430
6. Bruni F, Paterno F (1995) Market discipline of banks riskiness: a study of selected issues. J Financ Serv Res 303-325 (December)
7. Bryant J (1980) A model of reserves, bank runs, and deposit insurance. J Bank Financ 4:335-344
8. Calomiris CW (1999) Building an incentive-compatible safety net. J Bank Financ 23:1499-1519
9. Calomiris CW, Kahn CM (1991) The role of demandable debt in structuring optimal banking arrangements. Am Econ Rev 81:497-513
10. Danthine J-P, Giavazzi F, von Thadden E-L (2001) The effect of EMU on financial markets: a first assesment. In: Wyplosz C (ed) The impact of EMU on Europe and the developing countries. Oxford University Press, Oxford
11. Dewatripont M, Tirole J (1994) The prudential regulation of banks. MIT, Cambridge, Massachusetts
12. Diamond DW (1984) Financial intermediation and delegated monitoring. Rev Financ Stud 51:393-414
13. Diamond DW, Dybvig PH (1983) Bank runs, deposit insurance and liquidity. J Polit Econ 91:401-419
14. Flannery MJ (1994) Debt maturity and the deadweight cost of leverage: optimally financing banking firms. Am Econ Rev 84:320-331
15. Flannery MJ (1998) Using market information in prudential bank supervision: a review of the U.S. empirical evidence. J Money, Credit Bank 30:273-305
16. Flannery MJ, Nikolova S (2003) Market discipline of U.S. financial firms: recent evidence and research issues. Forthcoming in: Hunter WC, Kaufman GG, Borio C, Tsatsaronis K (eds) Market discipline across countries and industries. MIT, Cambridge, Massachusetts
17. Flannery MJ, Rangan KP (2002) Market forces at work in the banking industry: evidence from the capital buildup of the 1990s. Graduate School of Business Administration, University of Florida, mimeo
18. Flannery MJ, Kwan SH, Nimalendran M (2004) Market evidence on the opaqueness of banking firms assets. J Financ Econ 71:419-460
19. Gabbi G, Sironi A (2005) Which factors affect corporate bonds pricing? Empirical evidence from eurobonds primary market spreads. Eur J Financ 11:59-74
20. Galati G, Tsatsaronis K (2001) The impact of the euro on Europe s financial markets. BIS Working Paper 100
21. Gropp R, Vesala J, Vulpes G (2001) Equity and bond market signals as leading indicators of bank fragility in Europe. European Central Bank, mimeo
22. Hartmann P, Maddaloni A, Manganelli S (2003) The euro area financial system: structure, integration and policy initiatives. European Central Bank, mimeo
23. Heckman JJ (1976) The common structure of statistical models of truncation, sample selection and limited dependent variables and a simple estimator for such models. Ann Econ Soc Meas 5:475-492
24. Heckman JJ (1979) Sample selection bias as a specification error. Econometrica 47:153-161
25. Kwast ML et al (1999) Using subordinated debt as an instrument of market discipline. Report of a Study Group on Subordinated Notes and Debentures, M. Kwast, Chair. Board of Governors of the Federal Reserve System, Staff Study #172 (December)
26. Morgan DP (2002) Rating banks: risk and uncertainty in an opaque industry. Am Econ Rev 92:874-888
27. Myers SC, Rajan RG (1998) The paradox of liquidity. Q J Econ 113(3):733-771
28. Pagano M, von Thadden E-L (2004) The European bond markets under EMU. Oxford review of economic policy 20(4):531-554
29. Rajan R, Zingales L (1998) Financial dependence and growth. Am Econ Rev 88:559-586
30. Rajan R, Zingales L (2003) Banks and markets: the changing character of European finance. Forthcoming in: Gaspar V, Hartmann P, Sleijpen O (eds) The transformation of the European financial system. European Central Bank
31. Santos JAC (2001) Bank capital regulation in contemporary banking theory: a review of the literature. Financ Mark Inst Instrum 10(2):41-84
32. Santos JAC (2003) Why firm access to the bond market differs over the business cycle: a theory and some evidence. Federal Reserve Bank of New York, mimeo
33. Sironi A (2003) Testing for market discipline in the European banking industry: evidence from subordinated debt issues. J Money, Credit Bank 35:443-472