Determinants of bank’s financing choices under capital regulation

Autor:	Vanesa Llorens, Alfredo Martin-Oliver
Jazyk:	angličtina
Rok vydání:	2017
Předmět:	Banks Capital regulation Financing choices Informational asymmetries Financial markets Public finance K4430-4675 Economic growth development planning HD72-88
Zdroj:	SERIEs: Journal of the Spanish Economic Association, Vol 8, Iss 3, Pp 287-309 (2017)
Druh dokumentu:	article
ISSN:	1869-4187 1869-4195
DOI:	10.1007/s13209-017-0161-1
Popis:	Abstract 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:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/b014a5d0335c4331b50e0ba5922d8445 Zobrazit plný text záznamu Full text from SpringerLink View record in DOAJ