The Journal of Finance

Ownership Structure, Deregulation, and Bank Risk Taking

Published: 6/1990,  Volume: 45,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1990.tb03709.x  |  Cited by: 697

ANTHONY SAUNDERS, ELIZABETH STROCK, NICKOLAOS G. TRAVLOS

This paper investigates the relationship between bank ownership structure and risk taking. It is hypothesized that stockholder controlled banks have incentives to take higher risk than managerially controlled banks and that these differences in risk become more pronounced in periods of deregulation. In support of this hypothesis, we show that stockholder controlled banks exhibit significantly higher risk taking behavior than managerially controlled banks during the 1979–1982 period of relative deregulation.

Managers, Owners, and The Pricing of Risky Debt: An Empirical Analysis

Published: 6/1994,  Volume: 49,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1994.tb05148.x  |  Cited by: 51

ELIZABETH STROCK BAGNANI, NIKOLAOS T. MILONAS, ANTHONY SAUNDERS, NICKOLAOS G. TRAVLOS

This article examines managerial ownership structure and return premia on corporate bonds. It is argued that when managerial ownership is low, an increase in managerial ownership increases management's incentives to increase stockholder wealth at the expense of bondholder wealth. When ownership increases more, however, it is argued that management becomes more risk averse, with incentives more closely aligned with bondholders. This study finds a positive relation between managerial ownership and bond return premia in the low to medium (5 to 25 percent) ownership range. There is also weak evidence for a nonpositive relation in the large (over 25 percent) ownership range.

THE JOB EVALUATION PROGRAM OF THE STATE FARM INSURANCE COMPANIES COMPARED WITH THOSE OF OTHER LEADING INSURANCE COMPANIES AS TO METHODS OF INTRODUCING AND CONTENT*

Published: 3/1953,  Volume: 8,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1953.tb01143.x  |  Cited by: 0

Elizabeth Lanham

The Value of a Finance Journal Publication

Published: 2/1998,  Volume: 53,  Issue: 1  |  DOI: 10.1111/0022-1082.135230  |  Cited by: 52

Steve Swidler, Elizabeth Goldreyer

The empirical analysis examines the salary and publication records of 311 finance professors at public research universities to calculate the worth of a top finance journal article. Within rank, salary regressions provide measures of the direct returns of a journal publication, while probit models consider the indirect returns that result from promotion. Ultimately, the analysis uses a reduced form salary equation to measure both the direct and indirect effects of publishing a journal article. Depending on professorial rank, the present value of the first top finance journal article is between $19,493 and $33,754, with the additional result of large returns to subsequent publications.

PUBLIC PREFERENCES AND THE TAX STRUCTURE: AN EXAMINATION OF FACTORS RELATED TO STATE AND LOCAL TAX PREFERENCES*

Published: 9/1962,  Volume: 17,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1962.tb04321.x  |  Cited by: 0

Elizabeth Jane Likert David

Half Banked: The Economic Impact of Cash Management in the Marijuana Industry

Published: 6/19/2024,  Volume: 79,  Issue: 4  |  DOI: 10.1111/jofi.13364  |  Cited by: 4

ELIZABETH A. BERGER, NATHAN SEEGERT

We investigate the economic value of cash management. In the legal marijuana industry, where only half of businesses have access to cash management services from a financial institution, we examine dispensary profitability using administrative and survey data. Our results show that businesses with cash management charge higher retail prices (8.3%), pay lower wholesale prices (7.3%), and have higher sales volume (19%). Together, these advantages create a 40% increase in profitability. These results support our model in which reputational capital and administrative costs drive profitability regardless of whether national banks, credit unions, or fintech provide the cash management functions.

THE MACROECONOMIC IMPACT OF CHANGES IN THE CEILINGS ON DEPOSIT RATES

Published: 3/1977,  Volume: 32,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1977.tb03246.x  |  Cited by: 0

Marie Elizabeth Sushka, Myron B. Slovin

A Model of the Commercial Loan Rate

Published: 12/1983,  Volume: 38,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1983.tb03842.x  |  Cited by: 36

MYRON B. SLOVIN, MARIE ELIZABETH SUSHKA

This paper explores the theoretical and empirical determinants of the commercial loan rate charged by commercial banks based on a model of financial intermediary behavior which assumes monopolistic competition in asset and liability markets. The model incorporates the constraint that banks must maintain at least a minimum quantity of bonds in asset portfolios. Equations are estimated on a time series basis to explain the behavior of commercial loan rates over the period 1953 to 1980. The evidence appears consistent with the hypothesis that commercial banks operate in a market characterized by imperfect competition and that they explicitly set loan rates.

THE STRUCTURAL SHIFT IN THE DEMAND FOR MONEY

Published: 6/1975,  Volume: 30,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1975.tb01846.x  |  Cited by: 4

Myron B. Slovin, Marie Elizabeth Sushka

The 1985 Ohio Thrift Crisis, the FSLIC's Solvency, and Rate Contagion for Retail CDs

Published: 7/1992,  Volume: 47,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1992.tb04000.x  |  Cited by: 25

ELIZABETH S. COOPERMAN, WINSON B. LEE, GLENN A. WOLFE

This paper uses both an ARIMA transfer‐function intervention model and a panel data analysis to examine the effect of the Ohio deposit insurance crisis in 1985 on the pricing of six‐month retail certificates of deposit (CDs) for federally‐insured Ohio banks and savings and loans. Adjusting for pricing reactions due to changes in market rates, we find a significant, unanticipated rise in CD‐rate premiums on the initial event week of the crisis that continued for approximately seven weeks. Consistent with a contingent insurance guarantee hypothesis, rate premiums are found to be risk based.