Ben-David, Itzhak; Palvia, Ajay; Stulz, René M. - 2020
The moral hazard incentives of the bank safety net predict that distressed banks take on more risk and higher leverage …. Since many factors reduce these incentives, including charter value, regulation, and managerial incentives, the net economic … include financial crises and are subject to different regulatory regimes (1985–1994, 2005–2014). We find that distressed banks …