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Cited by 543

The DOI matches its Crossref record; 45 of the 45 references it cites were found in a registry or an index.

Corporate Control, Portfolio Choice, and the Decline of Banking

GORTON, GARY, ROSEN, RICHARD·1995·The Journal of Finance
DOI 10.1111/j.1540-6261.1995.tb05183.x
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Abstract

In the 1980s, U.S. banks became systematically less profitable and riskier as nonbank competition eroded the profitability of banks' traditional activities. Bank failures rose exponentially during this decade. The leading explanation for the persistence of these trends centers on fixed‐rate deposit insurance: the insurance gives bank equityholders an incentive to take on risk when the value of bank charters falls. We propose and test an alternative explanation based on corporate control considerations. We show that managerial entrenchment played a more important role than did the moral hazard associated with deposit insurance in explaining the recent behavior of the banking industry.

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Crossref · 10.1111/j.1540-6261.1995.tb05183.x

Cites

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Metadata

Authors
GORTON, G., & ROSEN, R.
Venue
The Journal of Finance
Publisher
Wiley
Published
1995-12
Volume
50
Issue
5
Pages
1377-1420
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.1995.tb05183.x
OpenAlex
W1996443335
Cited by
543
References
45
FWCI
29.28
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Corporate Control, Portfolio Choice, and the Decline of Banking. https://app.cochat.ai/papers/10.1111/j.1540-6261.1995.tb05183.x
The paper
GORTON, G., & ROSEN, R. (1995). Corporate Control, Portfolio Choice, and the Decline of Banking. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1995.tb05183.x

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

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.