An empirical analysis of the relation between bank charter value and risk taking

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 measures of risk taking and an estimation method that accounts for the joint determination of charter value and risk taking.

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Year of publication:	2012
Authors:	Niu, Jijun
Published in:	The Quarterly Review of Economics and Finance. - Elsevier, ISSN 1062-9769. - Vol. 52.2012, 3, p. 298-304
Publisher:	Elsevier
Subject:	Bank \| Charter value \| Risk taking

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Type of publication:	Article
Classification:	G21 - Banks; Other Depository Institutions; Mortgages ; G28 - Government Policy and Regulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010868876