Expanded securities underwriting: implications for bank risk and return

Article Abstract:

The implications of the Federal Reserve Board's decision in 1987 to expand underwriting privileges of banks on the risk and return of the common stock of commercial banks are investigated. Effects of the same decision on investment banking firms are also examined. Through a factor-analytic event study, it is shown that money center versus regional banks benefit the most from the Federal Reserve Board decision. The study also indicates that investment banks do not suffer significant loss arising from reduced market share and that wealth transfer from investment to commercial banks is low.

Finance, taxation, & monetary policy, Banking industry, Management, Laws, regulations and rules, Services, Investment banks, United States. Federal Reserve Board

---

Asset fungibility and equilibrium capital structures

Article Abstract:

Studies of a single firm's optimal debt-equity ratio do not take into account the interrelationship of market interest rates and the firm's choices. A general equilibrium model is developed whose cross-sectional distribution of debt-equity ratios is estimated by the firm's asset fungibility. The costs and benefits to shareholders for changing the asset's payoff distribution are taken into account. The variation of interest rates on corporate debt is also examined in relation to the fungibility of the firm's assets.

Interest rates, Capital assets, Fungibles

---

Degree of competition in the Japanese securities industry

Article Abstract:

The results of a study conducted on Japanese securities industry and its competitiveness by using H-statistics proposed by Panzar and Rosse for the period of 1983-2002 are presented.

Japan, Research and Development in the Physical, Engineering, and Life Sciences, Marketing procedures, Research Findings, Market share, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Statistics, Usage, Competition (Economics), Securities industry, Marketing research, Company market share, Statistics (Mathematics), Mathematical statistics, Market research

Similar abstracts:

• Abstracts: A mixed fan hypothesis and its implications for behavior toward risk. Rational escalation of costs by playing a sequence of unfavourable gambles: the martingale
• Abstracts: On biases in the measurement of foreign exchange risk premiums
• Abstracts: Efficiency testing revisited: a foreign exchange market with Bayesian learning. Dollarization and inflation in a two-country optimization model
• Abstracts: Endogenous formation of cooperation structures. Hierarchies of beliefs and common knowledge
• Abstracts: An evolutionary model of bargaining. Commitment through incomplete information in a simple repeated bargaining game

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.