The DOI matches its Crossref record; 34 of the 34 references it cites were found in a registry or an index.
What Caused the Bank Capital Build-up of the 1990s?
Abstract
Large U.S. banks dramatically increased their capitalization during the 1990s, to the highest levels in more than 50 years. We document this buildup of capital and evaluate several potential motivations. Our results support the hypothesis that regulatory innovations in the early 1990s weakened conjectural government guarantees and enhanced bank counterparties' incentives to monitor and price default risk. We find no evidence that a bank holding company's (BHC's) market capitalization increases with its asset volatility prior to 1994. Thereafter, the data display a strong cross-sectional relation between capitalization and asset risk.
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Cites
Econometric Analysis of Panel Data
Baltagi, B. H. (2021) · Springer Texts in Business and Economics · doi:10.1007/978-3-030-53953-5 · Cited by 15,104
The Cost of Capital, Corporation Finance and the Theory of Investment
Miller, M. H. (1958) · American Economic Review · Cited by 14,574
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Merton, R. C. (1974) · The Journal of Finance · doi:10.1111/j.1540-6261.1974.tb03058.x · Cited by 10,581
The cost of capital, corporation finance and the theory of investment
Terra, P. R. (2008) · Revista de Administração e Contabilidade da Unisinos · doi:10.4013/base.20082.07 · Cited by 8,615
Relationship Lending and Lines of Credit in Small Firm Finance
Berger, A. N., & Udell, G. F. (1995) · The Journal of Business · doi:10.1086/296668 · Cited by 3,636
The effect of credit market competition on lending relationships
Petersen, M. A., & Rajan, R. G. (1995) · The Quarterly Journal of Economics · doi:10.2307/2118445 · Cited by 3,294
Partial adjustment toward target capital structures
Flannery, M. J., & Rangan, K. P. (2006) · Journal of Financial Economics · doi:10.1016/j.jfineco.2005.03.004 · Cited by 2,027
Self-citationMerton, R. C. (1977) · Journal of Banking & Finance · doi:10.1016/0378-4266(77)90015-2 · Cited by 1,920
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Dynamic Capital Structure Choice: Theory and Tests
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Pathan, S. (2009) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2009.02.001 · Cited by 1,031
Credit Market Competition and Capital Regulation
Allen, F., Carletti, E., & Marquez, R. (2011) · Review of Financial Studies · doi:10.1093/rfs/hhp089 · Cited by 615
Consolidation in banking and financial stability in Europe: Empirical evidence
Uhde, A., & Heimeshoff, U. (2009) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2009.01.006 · Cited by 537
Current Issues in Economics and Finance
(2017) · Springer eBooks · doi:10.1007/978-981-10-5810-3 · Cited by 494
Bank Capital and Value in the Cross-Section
Mehran, H., & Thakor, A. (2011) · Review of Financial Studies · doi:10.1093/rfs/hhq022 · Cited by 465
Metadata
- Authors
- Flannery, M. J., & Rangan, K. P.
- Venue
- Review of Finance
- Publisher
- Oxford University Press (OUP)
- Published
- 2007-03-22
- Volume
- 12
- Issue
- 2
- Pages
- 391-429
- ISSN
- 1382-6662 (ISSN-L)
- 1573-692X
- 1572-3097
- OpenAlex
- W3022716229
- Cited by
- 401
- References
- 34
- FWCI
- 22.44
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
