Determinants of bank’s financing choices under capital regulation
| Autor: | Vanesa Llorens, Alfredo Martín‐Oliver |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2017 |
| Předmět: |
media_common.quotation_subject
lcsh:K4430-4675 lcsh:HD72-88 lcsh:Economic growth development planning Corporate finance Financial capital Banks Debt 0502 economics and business ddc:330 Economics Capital requirement Informational asymmetries 050207 economics lcsh:Public finance media_common Finance 050208 finance business.industry Financial instrument Financial markets 05 social sciences Financial market Capital regulation Capital (economics) G21 business General Economics Econometrics and Finance Public finance Financing choices |
| Zdroj: | SERIEs: Journal of the Spanish Economic Association, Vol 8, Iss 3, Pp 287-309 (2017) |
| ISSN: | 1869-4195 1869-4187 |
| Popis: | This paper analyzes the financing choices of banks under capital regulation during the expansion period that preceded the crisis. We use data from Dealogic on the issuances of financial instruments of Spanish banks to test whether financing choices respond to predictions derived from the corporate finance theory and/or to capital regulation. We find that banks financed their exponential growth with debt instruments and covered the additional regulatory capital requirements from higher risk-weighted assets with the issuance of hybrid instruments. We also find that banks choose the financial instruments that minimize asymmetric information costs. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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