Detail Effects of capital regulation and information asymmetries on bank lending Bibliografi Author: James, Christopher M. (Advisor); Marcus, David Frederic Topik: BUSINESS ADMINISTRATION; BANKING|ECONOMICS; FINANCE Bahasa: (EN )    ISBN: 0-591-16647-X     Penerbit: UNIVERSITY OF FLORIDA     Tahun Terbit: 1996     Jenis: Theses - Dissertation Fulltext: 9709273.pdf (0.0B; 0 download) Abstract This paper provides evidence that asymmetric information problems increase the costs of external finance for banking firms. Specifically, I find a positive and significant relation between bank loan growth and internally generated additions to capital. Consistent with the hypothesis that capital requirements limit bank financing choices, this cash flow sensitivity of investment is positively related to the extent that capital requirements are binding. I also find that the formulation of the capital ratio itself is important in determining bank loan growth. Specifically, with regulators enforcing leverage-based capital standards, banks can rely on a buffer stock of securities to fund investment in a liquidity crisis. However, the use of risk-based standards substantially reduces the effectiveness of securities as financial slack. My results also suggest that bank holding companies establish internal capital markets to allocate scarce capital among their subsidiaries in response to costly external finance. I find that investment by bank subsidiaries is more sensitive to the cash flows and capitalization of its holding company than its own cash flows and capitalization. Finally, I find that the severity of information asymmetries affects both the likelihood of an external capital issuance and the expected costs of issuance. I find a negative relation between the cash flow sensitivity of investment and the probability that banks issue external capital. I also find that firms that anticipate larger external finance costs exhibit significantly higher cash flow sensitivities of investment. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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