Market reaction to the thrift behaviour

Article Abstract:

The US Financial Institutions Reform, Recovery and Enforcement Act implemented in Aug 1989 reformed the thrift and depository industry. Research was undertaken to plot the response of the thrift and commercial bank share prices leading up to the implementation of the Act. The Act intended to offer extra security measures and more financial support for fraud detection and litigation. The report shows that thrift share prices reacted favourably to the Act as a result of depositor confidence, reduced risk premia on large deposits, decreased deposit turnover and decreased loan losses.

DEPOSITORY INSTITUTIONS, Research, Financial institutions, Savings and Loan Associations Bailout Crisis, 1987-

---

Reaction of bank share prices to the Third-World Debt Reduction Plan

Article Abstract:

Government intervention in financial institutions take the form of regulatory measures such as the Debt Reduction Plan (DRP). The reaction of commercial banks to DRP was found to be inconstant across bank holding companies (BHCs) heavily exposed to debt incurred by less developed countries, being most favorable to banks most exposed to debt. Variance of share price sensitivity of BHCs indicate that some BHCs are more prepared than others to debt exposure.

Management, Developing countries, International relations, Industrialized countries, External debts, Bank holding companies

---

Wealth effects from acquiring bankrupt firms

Article Abstract:

The benefits of purchasing bankrupt firms are analyzed. Some of these include the ease of acquisition, court support against resistance and tax advantages. The purchase of bankrupt firms is also more profitable when a firm is the only buyer and their businesses are similar. On the other hand, disadvantages of acquisition include the cost of reorganization as well as the lack of guarantees on the future profitability of the acquired firm.

Analysis, Acquisitions and mergers, Bankruptcy

Similar abstracts:

• Abstracts: Tax software programs continue to add features as electronic filing support grows
• Abstracts: Bureaucracy, economic regulation, and the incentive limits of the firm. Power plays: regulation, diversification, and backward integration in the electric utility industry
• Abstracts: Raikes rolls on the fast track at Microsoft. No quick fix. Butterfield focuses on Fujitsu's imaging products
• Abstracts: Interest groups put to the test. Norman's conquest. The CAs of summer
• Abstracts: The presentation sensation. What's in a logo. Comdex: too big or just right?

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