Journal ArticleDOI
Wealth effects of asset securitization
Reads0
Chats0
TLDR
This article examined changes in wealth for firms that securitize assets and found that strong banks experience wealth gain while weak banks experienced wealth loss upon the announcement of assetsecuritization.Abstract:
This paper examines changes in wealth for firms that securitize assets. Findings are industry specific with wealth increase for finance companies, with no wealth change for industrial companies and automobile companies, and with wealth loss for banks. Further examination, however, reveals that excess returns for banks are significantly related to financial slack in the quarter preceding the securitization announcement. Findings indicate that strong banks experience wealth gain while weak banks experience wealth loss upon the announcement of asset securitization.read more
Citations
More filters
Journal ArticleDOI
Financial Synergies and the Optimal Scope of the Firm: Implications for Mergers, Spinoffs, and Structured Finance
TL;DR: In this paper, the authors consider activities with nonsynergistic operational cash flows and examine the purely financial benefits of separation versus merger, and find that the magnitude of financial synergies depends upon tax rates, default costs, relative size, and the riskiness and correlation of cash flows.
ReportDOI
Default Risk Sharing Between Banks and Markets: The Contribution of Collateralized Debt Obligations
TL;DR: In this article, the authors explore how loan securitization affects banks' default risk, their systematic risk, and their stock prices, and find an increase of the banks%u2019 betas, but no significant stock price effect around the announcement of a CDO issue.
Journal ArticleDOI
What drives bank securitisation? The Spanish experience.
TL;DR: In this paper, the authors analyzed the reasons why Spanish banks securitised in the period 2000-2007 on such a large scale that Spain has become the European country with the second largest issuance volume after the UK.
Journal ArticleDOI
Securitization and Bank Performance
TL;DR: In this paper, the authors evaluate whether banks improve their performance through the use of securitization markets by applying a propensity score matching approach and build a counterfactual group of banks to assess what would have happened to the non-securitizing banks had they not securitized.
BookDOI
Technological Change, Financial Innovation, and Diffusion in Banking
W. Scott Frame,Lawrence J. White +1 more
TL;DR: The role of the financial system in economies and how technological change and financial innovation can improve social welfare is discussed in this paper. But, while much effort has been devoted to understanding the characteristics of users and adopters of financial innovations and the attendant welfare implications, we still know little about how and why financial innovations are initially developed.
References
More filters
Book
Nonparametric Statistical Methods
Myles Hollander,Douglas A. Wolfe +1 more
TL;DR: An ideal text for an upper-level undergraduate or first-year graduate course, Nonparametric Statistical Methods, Second Edition is also an invaluable source for professionals who want to keep abreast of the latest developments within this dynamic branch of modern statistics.
Journal ArticleDOI
Using daily stock returns: The case of event studies
TL;DR: In this paper, the authors examine properties of daily stock returns and how the particular characteristics of these data affect event study methodologies and show that recognition of autocorrelation in daily excess returns and changes in their variance conditional on an event can sometimes be advantageous.
Journal ArticleDOI
Measuring security price performance
TL;DR: In this article, observed stock return data are employed to examine various methodologies which are used 111 event studies to measure security price performance, and abnormal performance is introduced into this data and misuse of any of the methodologies can result in false inferences about the presence of abnormal performance.
Journal ArticleDOI
Investment banking and the capital acquisition process
TL;DR: In this article, the authors review the theory and evidence on the process by which corporations raise debt and equity capital and the associated effects on security prices, and test hypotheses about the stock price patterns accompanying announcements of security offerings.
Journal ArticleDOI
Bank funding modes: Securitization versus deposits
TL;DR: The authors examined a bank's choice of whether to fund the loans it originates by emitting deposits or to sell the loans to investors, and found that the choice is irrelevant with common knowledge of loan quality and laissez faire banking.