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Finance and Financial Management Commons™
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- Barriers to entry (1)
- Distance functions (1)
- Economic crisis (1)
- Extreme bounds analysis (1)
- Financial Regulation (1)
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- Financial crises (1)
- Following clients (1)
- Foreign bank efficiency (1)
- Iceland (1)
- International diversification (1)
- Joint ventures (1)
- Real options (1)
- Regulatory change (1)
- Risk diversification (1)
- Role of credit (1)
- Subsidiary divestment (1)
- Systemic Risk (1)
- Systemic risk; financial institutions; event study; regulatory reforms; capital adequacy (1)
Articles 1 - 4 of 4
Full-Text Articles in Finance and Financial Management
Demand For Credit, International Financial Legitimacy, And Vulnerability To Crises: Regulatory Change And The Social Origins Of Iceland’S Collapse, Erik Larson
Erik Larson
No abstract provided.
The Importance Of Being Systemically Important Financial Institutions, Paola Bongini, Laura Nieri
The Importance Of Being Systemically Important Financial Institutions, Paola Bongini, Laura Nieri
Paola Bongini
We investigate whether financial markets reacted to the regulatory changes implied by the publication of the SIFI list and the new rules designed to address the too-big-to-fail problem of systemic banks. Using event study methodology applied to a sample of 70 of the world’s largest banks, we assess whether the stock prices of SIFIs reacted significantly and differently from those of other large banks not deemed to be systemically important, following the release of information regarding: the methodology used to identify SIFIs and their new capital requirements; the disclosure of the first list of 29 SIFIs; the publication of the …
What Determines Differences In Foreign Bank Efficiency? Australian Evidence, Jan-Egbert Sturm, Barry Williams
What Determines Differences In Foreign Bank Efficiency? Australian Evidence, Jan-Egbert Sturm, Barry Williams
Barry Williams
This study examines the factors that determine differences in efficiency of foreign banks in the host market (Australia). The impact of home market, host market and parent bank characteristics are considered within the frameworks offered by comparative advantage and new trade theories. Parametric distance functions are used to estimate the efficiency of foreign banks in Australia, and the robustness of model specification is tested using both general-to-specific modelling and extreme bounds analysis. It is found that following clients reduces the efficiency of profit creation. Incumbent bank's market share acts as a barrier to entry, while parent bank profits do not …
Pitting Real Options Theory Against Risk Diversification Theory: International Diversification And Joint Ownership Control In Economic Crisis, Chris Chung, Seung-Hyun Lee, Paul Beamish, Colette Southam, Daeil Nam
Pitting Real Options Theory Against Risk Diversification Theory: International Diversification And Joint Ownership Control In Economic Crisis, Chris Chung, Seung-Hyun Lee, Paul Beamish, Colette Southam, Daeil Nam
Colette Southam
This study examines how MNE divestment decisions differ according to real options vs. risk diversification perspectives. We develop competing hypotheses in relation to international diversification and joint ownership control. Empirical results give consistent support to the real options perspective. We find that large MNEs with greater international diversification are less likely to divest their subsidiaries during times of economic crisis. The negative effect of joint ownership control is however manifested in both crisis-stricken and non-crisis country subsidiaries as well as in their interaction effect.