Niu, Jijun - In: The Quarterly Review of Economics and Finance 52 (2012) 3, pp. 298-304
This paper examines the relation between bank charter value and risk taking. Using a sample of U.S. banks over the period 1990–2006, we find that the relation is U-shaped: as charter value increases, risk taking first decreases and then increases. This finding is robust across alternative...