Bank capital and value in the cross-section

Review of Financial Studies

Volumn 24, Issue 4, 2011, Pages 1019-1067

  Mehran, Hamid ^a   Thakor, Anjan ^b  

^a FEDERAL RESERVE BANK OF NEW YORK   (United States)

^b WASHINGTON UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79953868873     PISSN: 08939454     EISSN: 14657368     Source Type: Journal    
DOI: 10.1093/rfs/hhq022     Document Type: Article

References (64)

1. Allen, F. 1990. The Market for Information and the Origin of Financial Intermediation. Journal of Financial Intermediation 1:3-30.
2. Allen, F., E. Carletti, and R. Marquez. 2009. Credit Market Competition and Capital Regulation. Review of Financial Studies. Advance Access published November 23, 2009, 10.1093/rfs/hhp089.
3. Allen, F., and D. Gale. 2000. Financial Contagion. Journal of Political Economy 108:1-33. (Pubitemid 30199840)
4. -. 2004. Competition and Financial Stability. Journal of Money, Credit and Banking 36:433-80.
5. Baker, M., and J. Wurgler. 2002. Market Timing and Capital Structure. Journal of Finance 57:1-32. (Pubitemid 36931755)
6. Barth, J. R., Gerard Caprio Jr., and R. Levine. 2004. Bank Regulation and Supervision: What Works Best? Journal of Financial Intermediation 13:205-48. (Pubitemid 38544632)
7. Barth, M. E. 1994. Fair Value Accounting: Evidence from Investment Securities and the Market Valuation of Banks. Accounting Review 69:1-25.
8. Beaver, W., and M. Venkatachalam. 1999. Differential Pricing of Discretionary, Nondiscretionary and Noise Components of Loan Fair Values. Working Paper, Stanford University.
9. Berger, A. N. 1995. The Relationship between Capital and Earnings in Banking. Journal of Money, Credit and Banking 27:432-56.
10. Berger, A. N., and C. H. S. Bouwman. 2009. Bank Liquidity Creation. Review of Financial Studies 22:3779-837.
11. Berger, A. N., R. DeYoung, M. J. Flannery, D. Lee, and O. Oztekin. 2008. How Do Large Banking Organizations Manage Their Capital Ratios? Journal of Financial Services Research 34:123-49.
12. Berger, A., A. A. Dick, L. G. Goldberg, and L. J. White. 2007. Competition from Large, Multimarket Firms and the Performance of Small, Single-Market Firms: Evidence from the Banking Industry. Journal of Money, Credit and Banking 39:331-68.
13. Berger, A. N., R. J. Herring, and G. P. Szego. 1995. The Role of Capital in Financial Institutions. Journal of Banking and Finance 19:393-430.
14. Berger, A. N., and G. F. Udell. 1994. Did Risk-Based Capital Allocate Bank Credit and Cause a "Credit Crunch" in the United States? Journal of Money, Credit and Banking 26:586-627.
15. Besanko, D., and G. Kanatas. 1996. The Regulation of Bank Capital: Do Capital Standards Promote Bank Safety? Journal of Financial Intermediation 5:160-83. (Pubitemid 126160274)
16. Bhattacharya, S., A.W. A. Boot, and A. V. Thakor. 1998. The Economics of Bank Regulation. Journal of Money, Credit and Banking 30:745-70.
17. Bishop, M. L., and T. Z. Lys. 2001. Inferring Accounting Information from Corporate Financing Choices: An Examination of Security Issuances in the Banking Industry. Contemporary Accounting Research (Fall):397-423. (Pubitemid 33680256)
18. Blum, J., and M. Hellwig. 1995. The Macroeconomic Implications of Capital Adequacy Requirements for Banks. European Economic Review 39:739-49.
19. Bolton, P., and X. Freixas. 2006. Corporate Finance and the Monetary Transmission Mechanism. Review of Financial Studies 19:829-70. (Pubitemid 44290384)
20. Boot, A. W. A., and M. Marinc. 2007. Competition and Entry in Banking: Implications for Capital Regulation. Working Paper, University of Amsterdam.
21. Boot, A. W. A., and A. V. Thakor. 1993. Self-Interested Bank Regulation. American Economic Review 83:206-12.
22. -. 1997. Banking Scope and Financial Innovation. Review of Financial Studies 10:1099-131. (Pubitemid 127348082)
23. -. 2000. Can Relationship Banking Survive Competition? Journal of Finance 55.
24. Brick, I. E., and D. Palia. 2007. Evidence of Jointness in the Terms of Relationship Lending. Journal of Financial Intermediation 16:452-76.
25. Carletti, E., V. Cerasi, and S. Daltung. 2007. Multiple-Bank Lending: Diversification and Free Riding in Monitoring. Journal of Financial Intermediation 16:425-51.
26. Dangl, T., and A. Lehar. 2004. Value-at-Risk vs. Building Block Regulation in Banking. Journal of Financial Intermediation 13:96-131. (Pubitemid 38530626)
27. Danthine, J.-P., F. Giavazzi, and E.-L. von Thadden. 2001. The Effect of EMU on Financial Markets: A First Assessment. In C. Wyplosz (ed.), The Impact of EMU on Europe and the Developing Countries, Chapter 9. London: Oxford University Press.
28. DeCamps, J.-P., J.-C. Rochet, and B. Roger. 2004. The Three Pillars of Basel II: Optimizing the Mix. Journal of Financial Intermediation 13:132-55. (Pubitemid 38530627)
29. Degryse, H., and S. Ongena. 2007. The Impact of Competition on Bank Orientation. Journal of Financial Intermediation 16:452-76.
30. Dell'Ariccia, G., and R. Marquez. 2006. Competition among Regulators and Credit Market Integration. Journal of Financial Economics 79:401-30. (Pubitemid 43092740)
31. Diamond, D., and R. Rajan. 2000. A Theory of Bank Capital. Journal of Finance 55:2431-65.
32. -. 2001. Liquidity Risk, Liquidity Creation and Financial Fragility. Journal of Political Economy 109:287-327. (Pubitemid 32497644)
33. Dittmar, A., and A. V. Thakor. 2007. Why Do Firms Issue Equity? Journal of Finance 62:1-54.
34. Flannery, M. J., and K. P. Rangan. 2008. What Caused the Bank Capital Build-Up of the 1990s? Review of Finance 12:391-429.
35. Gropp, R., and F. Heider. 2007. What Can Corporate Finance Say about Banks' Capital Structures? Working Paper, European Central Bank.
36. Hannan, T. H., and R. A. Prager. 2004. The Competitive Implications of Multimarket Bank Branching. Journal of Banking and Finance 28:1889-914. (Pubitemid 38808656)
37. Hart, O. 1993. Theories of Optimal Capital Structure: A Managerial Discretion Perspective. in Margaret Blair (Ed), the Deal Decade: What Takeover and Leveraged Buyouts Mean for Corporate Governance. Washington: The Brookings Institution.
38. Hart, O., and J. Moore. 1995. Debt and Seniority: An Analysis of the Role of Hard Claims in Constraining Management. American Economic Review 85:567-85.
39. Hellmann, T. F., K. C.Murdoch, and J. E. Stiglitz. 2001. Liberalization, Moral Hazard in Banking and Prudential Regulation: Are Capital Requirements Enough? American Economic Review 90:147-65.
40. Herrero-Garcia, A., and F. Vasquez. 2006. International Diversification Gains and Home Bias in Banking. Working Paper, BIS and IMF.
41. Holmstrom, B., and J. Tirole. 1997. Financial Intermediation, Loanable Funds, and the Real Sector. Quarterly Journal of Economics 112:663-91. (Pubitemid 28095148)
42. Jovanovic, B., and P. L. Rousseau. 2002. The Q-Theory of Mergers. American Economic Review 92:198-204.
43. Kashyap, A., R. Rajan, and J. C. Stein. 2002. Banks as Liquidity Providers: An Explanation for the Co-existence of Lending and Deposit-Taking. Journal of Finance 57:33-73. (Pubitemid 36931756)
44. Keeley, M. C. 1990. Deposit Insurance, Risk, and Market Power in Banking. American Economic Review 80:305-60.
45. Landsman, W. 2006. Fair Value Accounting for Financial Instruments: Some Implications for Bank Regulation. Working Paper, BIS.
46. Mailath, G. J., and L. J. Mester. 1994. A Positive Analysis of Bank Closure. Journal of Financial Intermediation 3:272-99.
47. Miller, M. 1995. Do the M&M Propositions Apply to Banks? Journal of Banking and Finance 19:483-9.
48. Mishkin, F. 2000. The Economics of Money, Banking and Financial Markets. New York: Addison Wesley.
49. Modigliani, F., and M. H. Miller. 1958. The Cost of Capital, Corporate Finance and the Theory of Investment. American Economic Review 48:261-97.
50. Morrison, A. D., and L. White. 2005. Crises and Capital Requirements in Banking. American Economic Review 95:1548-72. (Pubitemid 43550743)
51. Myers, S. C., and N. S. Majluf. 1984. Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have. Journal of Financial Economics 13:187-221.
52. Peura, S., and J. Keppo. 2006. Optimal Bank Capital with Costly Recapitalization. Journal of Business 79:2163-201. (Pubitemid 44369763)
53. Ramakrishnan, R. T. S., and A. V. Thakor. 1984. Information Reliability and a Theory of Financial Intermediation. Review of Economic Studies 51:415-32.
54. Repullo, R. 2004. Capital Requirements, Market Power, and Risk Taking in Banking. Journal of Financial Intermediation 13:156-82. (Pubitemid 38530628)
55. Repullo, R., and J. Suarez. 2007. The Procyclical Effects of Basel II. Working Paper, CEMFI.
56. Roll, R. 1986. The Hubris Hypothesis of Corporate Takeovers. Journal of Business 59:197-216.
57. Ross, S. 1977. The Determination of Financial Structure: The Incentive Signaling Approach. Bell Journal of Economics 8:23-40.
58. Shleifer, A., and R. W. Vishny. 2003. Stock Market Driven Acquisition. Journal of Financial Economics 70:295-311.
59. Song, F., and A. V. Thakor. 2007. Relationship Banking, Fragility, and the Asset-Liability Matching Problem. Review of Financial Studies 20:2129-77.
60. Stulz, R. 1990. Managerial Discretion and Optimal Financial Policies. Journal of Financial Economics 26:3-27.
61. Thakor, A. V. 1996. Capital Requirements, Monetary Policy, and Aggregate Bank Lending: Theory and Empirical Evidence. Journal of Finance 51:279-324.
62. Thakor, A. V., and J. Beltz. 1994. A "Barter" Theory of Bank Regulation and Credit Allocation. Journal of Money, Credit and Banking 26:679-705.
63. Van den Heuvel, S. 2008. The Welfare Cost of Bank Capital Requirements. Journal of Monetary Economics 55:298-320.
64. Welch, I. 2004. Capital Structure and Stock Returns. Journal of Political Economy 112:106-31. (Pubitemid 38485517)