Detail The determinants of capital structure of banks: An empirical investigation Bibliografi Author: Hasan, Muhammad Rabiul ; Baker, James C. (Advisor) Topik: BUSINESS ADMINISTRATION; BANKING|BUSINESS ADMINISTRATION; MANAGEMENT Bahasa: (EN )    ISBN: 0-591-59639-3     Penerbit: KENT STATE UNIVERSITY     Tahun Terbit: 1997     Jenis: Theses - Dissertation Fulltext: 9809246.pdf (0.0B; 10 download) Abstract This study analyzes the explanatory power of some of the recent theories of capital structure of financial institutions and examines the relationship between business risk and leverage, and between risk-weighted assets and leverage of banks, in particular. The very nature of depository institutions like banks calls for a high degree of leverage primarily because of their safekeeping and intermediary functions. Moreover, these institutions have to operate under a strong regulatory environment. A minimum capital adequacy ratio, though varying among various depositories, is one of the important tools in the hands of the regulators to maintain the stability of the financial system. Observed capital ratios of depositories do differ from the required minimum. How much capital is optimal? Do these financial institutions have optimal or target capital structures like the ones that many believe to be present for non-financial corporations? Empirical work involving the determinants of capital structure of financial firms are either limited to large banks or lack statistical conclusions. This study extends the empirical work in this area by examining a much broader set of capital structure theories and by using a much broader sample by including both large and small banks. Also, this study, for the first time, focuses on the relevance of risk-adjusted assets in the capital structure of banks. The study uses the multiple regression analysis in a partial adjustment framework. Data from Call and Income Reports with the Federal Reserve System was used for this study. The results of the study do not indicate the U-shaped relationship between business risk and leverage as has been suggested for the nonfinancial firms. Also, the risk-adjusted assets does not seem to have the expected inverse relationship with debt ratio. The present study, however, supports the earlier result that regulatory pressure has significant impact on the leverage of banks. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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