fixed income unless the value of the bank’s assets falls below a predetermined threshold. In such an event, the debt … obligation is automatically converted to the bank’s common equities. By using a contingent claims valuation approach we present … bank that includes DES or alternatively subordinated debt in its capital structure. We compare and evaluate quantitatively …

We present evidence on the duration of firm-bank relationships using a unique panel data set of connections between … a relationship and the causes for ending an existing bank relationship. We find that duration itself does not greatly …. We also find firms that maintain simultaneous multiple-bank relationships are more likely to end a bank relationship than …

We examine whether two commonly used indicators of bank fragility, the subordinated debt spread and KMV’s distance to … signals bank fragility earlier than the subordinated debt spread. Also, the spread is affected by the implicit safety net of … the bank. Finally, the results suggest that the indicators may add marginal value to accounting information through a …

around the world. …

bank to 83% of minimum required capital for a specialty bank. In this paper, we present a breakdown of the effects of the …

The primary purpose of this article is to investigate the relationship between bank capital and credit risk taking in … and legal environment in driving bank capitalization and credit risk taking behavior in emerging market economies. …