Holding company affiliation and bank stability: Evidence from the US banking sector |
| |
| Institution: | 1. Department of Economics, Wilfrid Laurier University, Canada;2. Centre for Applied Macroeconomic Analysis (CAMA), Australia;3. Deutsche Bundesbank, Frankfurt am Main, Germany;4. Department of Economics, Westfälische Wilhelms-Universität Münster, Am Stadtgraben 9, 48143 Münster, Germany;1. ENSEA Abidjan, Ivory Coast & BCEAO, Dakar, Senegal;2. School of Management and Finance, SOAS University of London, UK;3. Department of Finance, Insurance and Real Estate & Laboratory for Financial Engineering of Université Laval, Faculty of Business Administration, Laval University, Quebec, Canada |
| |
| Abstract: | Is affiliation with a multibank holding company beneficial for bank stability? We revisit this question by examining the response of market-based risk measures of independent and multibank-holding-company banks to an exogenous negative shock (the 2005 US hurricane season). We find evidence consistent with bank holding companies playing an important role in mitigating negative shocks, with affiliates of more liquid holdings remaining more stable in terms of both systemic and individual stability. We also conduct an event study showing that markets perceive multibank-holding-company banks' dynamics after the shock as value-enhancing. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
