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Conference Paper
Efficient banking under interstate branching
Conference Paper
Measuring the efficiency of capital allocation in commercial banking
Conference Paper
Managerial incentives and the efficiency of capital structure
Conference Paper
Estimating managers' utility-maximizing demand for agency goods
An empirical model of managers? demand for agency goods is derived and estimated using the Almost Ideal Demand System of Deaton and Muellbauer (AER 1980). As in Jensen and Meckling (JFE 1976), we derive managers? demand for agency goods by maximizing a managerial utility function where managers allocate the potential value of their firm?s assets to the consumption of agency goods and the production of market value (which, given their ownership stake, determines their wealth). The utility function is defined over wealth and the value of agency goods and is conditioned on managers? holdings of ...
Conference Paper
Recovering banking technologies when managers are not risk-neutral.
Conference Paper
Evidence on the objective of bank regulators
Working Paper
Does Scale Matter in Community Bank Performance? Evidence Obtained by Applying Several New Measures of Performance
SUPERSEDES WP16-15 We consider how size matters for banks in three size groups: banks with assets of less than $1 billion (small community banks), banks with assets between $1 billion and $10 billion (large community banks), and banks with assets between $10 billion and $50 billion (midsize banks). Community banks have potential advantages in relationship lending compared with large banks. However, increases in regulatory compliance and technological burdens may have disproportionately increased community banks? costs, raising concerns about small businesses? access to credit. Our evidence ...
Working Paper
Safety in numbers? Geographic diversification and bank insolvency risk
The Riegle-Neal Interstate Banking and Branching Efficiency Act, passed in September 1994 and effective June 1, 1997, will allow nationally chartered banks to branch across state lines. This act will remove impediments to interstate expansion and permit the consolidation of existing interstate networks ; What will be the impact of this legislation on bank performance and bank safety? Removing impediments to geographic expansion should improve the risk-return tradeoff faced by most banks. However, this paper argues that economic theory does not tell us whether an improvement in the risk-return ...