How does equity capital cost affect bank performance during a financial crisis?
學年 103
學期 2
出版（發表）日期 2015-04-16
作品名稱 How does equity capital cost affect bank performance during a financial crisis?
作品名稱（其他語言）
著者 Tsai, Jeng-Yan; Chen, Shi
單位
出版者
著錄名稱、卷期、頁數 Applied Economics 47(42), pp.4459-4474
摘要 This article theoretically examines how equity capital cost affects return performance and safety of a bank and how this effect varies across a financial crisis comparing to a normal time when the bank manager’s performance reveals the like of higher equity return and the dislike of higher equity risk. We derive two main results. First, an increase in the bank’s equity capital cost from an increase of the interest rate of the Federal funds results in a reduced loan risk-taking at an increased optimal bank interest margin, implying better bank performance. Second, by ignoring the dislike, we find that the better performance is reinforced during a financial crisis but is reduced during a normal time. Financial crises and the dislike preference as such contribute a relatively low return and the stability of banking activities.
關鍵字 bank interest margin;equity capital cost;barrier;utility maximization
語言 en
ISSN 0003-6846;1466-4283
期刊性質 國外
收錄於 SSCI
產學合作
通訊作者 Tsai, Jeng-Yan
審稿制度 否
國別 GBR
公開徵稿
出版型式 ,電子版,紙本
相關連結

機構典藏連結 ( http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/109566 )