We investigate the empirical relationship between macroeconomic risk, bank liquidity, and bank risk surrounding the 1999 Financial Services Modernization Act. We propose that bank risk and liquidity are positively related as macroeconomic risk increases, and that this effect is particularly...

This work examines the long-term stock performance of asset purchases and its major determinants by evaluating cross-sectional differences. The findings show that buyers’ stocks, on average, underperform their benchmarks following purchases. The buy-and-hold abnormal returns of buyers...