This study considers the time series relationship between bank non interest income and bank net interest margins in Australia using panel vector autoregressions. It is found that increases in bank non interest income are being used to supplement decreases in net interest margins, but that the...

We find that larger US bank holding companies (BHCs) hold lower quality capital buffers than their smaller peers. US BHCs' capital buffer quality is found to be a function of their operational complexity, risk-weighted assets and profitability. We, however, find no evidence that large US BHCs...

This study investigates why banks issue Contingent Convertible Bonds (CoCos). We find that a bank's systemic risk level is a possible reason for CoCo issuance. Contrary to the pecking order theory, earnings management practices play a lesser role, and there is no evidence of banks becoming...

We highlight the role revenue portfolio diversification plays in determining idiosyncratic and systemic risk in a global sample of large banks. We find that increased bank revenue diversification reduces idiosyncratic risk but increases systemic risk, while also demonstrating that increased bank...

This study investigates why banks issue Contingent Convertible Bonds (CoCos). We find that a bank's systemic risk level is a possible reason for CoCo issuance. Contrary to the pecking order theory, earnings management practices play a lesser role, and there is no evidence of banks becoming...

The roles bank franchise value (‘skin in the game') and CEO ownership play in determining bank risk are studied for large United States Bank Holding Companies. We find robust evidence of a convex relation between bank risk and each of CEO shareholding and franchise value, indicating that...