Showing papers in "Journal of Financial Intermediation in 2004"

TL;DR: In this paper, the authors investigated the existence of cross-sectional differences in the response of lending to monetary policy and GDP shocks owing to differences in bank capitalization and found that bank capital matters in the propagation of different types of shocks to lending.

TL;DR: In this paper, the authors present a dynamic model of imperfect competition in banking where the banks can invest in a prudent or a gambling asset, and they show that if intermediation margins are small, the banks' franchise values will be small, and in the absence of regulation only a gambling equilibrium will exist.

TL;DR: The authors consider a general equilibrium model with frictions in credit markets used by households and show that such a change would increase the effect of monetary policy shocks on consumption, but would decrease the effect on house prices and housing investment.

TL;DR: In this article, the relationship between the Spanish business cycle and the capital buffers held by Spanish commercial and savings banks in an incomplete panel of institutions covering the period 1986-2000, which comprises a complete cycle.

TL;DR: In this paper, the authors construct a new database on the ownership of banks internationally and then assess the ramifications of ownership, shareholder protection laws, and supervisory and regulatory policies on bank valuations.

TL;DR: In this paper, the authors analyzed the loan pricing implications of the reform of bank capital regulation known as Basel II and showed that only a very high social cost of bank failure might justify the proposed IRB capital charges, partly because the net interest income from performing loans is not counted as a buffer against credit losses.

TL;DR: In this article, the authors examined the empirical relationship between the average asset correlation and the probability of default and the book value of assets of US, Japanese, and European firms using data from year-end 2000.

TL;DR: In this paper, the authors developed a continuous-time model of commercial banks' behavior where interaction between these three instruments can be analyzed, and studied the conditions under which market discipline can reduce the minimum capital requirements needed to prevent moral hazard.

TL;DR: In this article, the authors investigate how a firm's choice between borrowing from a single bank and from two banks affects banks' equilibrium monitoring intensities and loan rates and show that two-bank lending suffers from duplication of effort and sharing of monitoring benefits, but it benefits from diseconomies of scale in monitoring.

TL;DR: In this paper, the authors analyze the disinvestment decisions of venture capitalists in the course of an IPO of their portfolio firms and show that this choice is facilitated by a reputation-based mechanism in a repeated-game setting.

TL;DR: In this paper, the authors find a positive relation between use of security designs that separate votes from capital and frequency of family-controlled firms in Sweden and other countries, and conclude that ownership concentration is due to the value families attach to control.

TL;DR: This paper examined mergers among billion-dollar banks in the 1990s and found that changes in CEO compensation after mergers are positively related to anticipated gains from merger measured at the announcement date.

TL;DR: The authors analyzes the effect of dynamic capital structure adjustments on credit risk and finds that capital structure dynamics lower optimal initial leverage ratios but increase both, fair credit spreads and expected default probabilities for moderate levels of transactions costs.

TL;DR: In this paper, the effect of specific regulatory capital requirements on the risk-taking behavior of banks is examined, where the banks' choice of asset risk is endogenously determined and the authors compare regulation based on the Basel-I building block approach to value-at-risk or internal model-based capital requirements with respect to risk taking behavior, deposit insurance liability, and shareholder value.

TL;DR: In this article, a new hypothesis that bank managers issue public debt, at least in part, to convey positive, private information and refrain from issuing to hide negative private information is tested against the traditional "adverse selection" hypothesis.

TL;DR: The authors examined the relationship between stock repurchases and financial performance for a large sample of bank holding companies and found that higher levels of repurchase in one year are associated with higher profitability and a lower share of problem loans in the subsequent year.

TL;DR: In this article, the authors compare three types of market regimes, namely, monopoly-intermediated, competitively-intermediated and decentralized, and find that the second regime is best equipped to deal with speculation: an informed monopolist can price-discriminate investors and thus always avoid market breakdown.