This paper investigates the relationship between national culture and cross-country variations in bank liquidity creation. We hypothesize that banks in individualistic societies create more liquidity because of risk-taking and overconfidence bias. On the other hand, a better access to soft...

Governments provide guarantees to banks, such as deposit insurance, often increasing them during financial crises. While risk effects are well researched, impacts on bank output remain largely unexplored. We investigate bank output effects using data from 75 countries on bank liquidity creation,...

We investigate the effects of bank powers – regulatory permissions to engage in nontraditional activities – on liquidity creation, the most comprehensive measure of bank output. We find support for the empirical dominance of the synergies view over the scope diseconomies view. Additional...

We examine the effects of geographic deregulation on banks' cost of equity (COE) using changes in interstate bank branching laws over the post–Riegle-Neal period (1994:Q4–2016:Q4). We find strong evidence that deregulation increases banks' COE. This is driven primarily by active acquirers,...

We examine the effects of competition on bank risk. We find strong evidence that interstate banking deregulation — which generally increases bank competition — is associated with lower bank risk and some evidence intrastate branching increases bank risk. Further, interstate banking reduces...