The effect of bank organizational risk-management on the pricing of non-deposit debt

IF 1.5 4区 经济学 Q3 BUSINESS, FINANCE
Iftekhar Hasan, Emma Peng, Maya Waisman, Meng Yan
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引用次数: 0

Abstract

We test whether organizational risk management matters to bondholders of U.S. bank holding companies (BHCs), and find that debt financing costs increase when the BHC has lower-quality risk management. Consistent with bailouts giving rise to moral hazard among bank creditors, we find that bondholders put less emphasis on risk management in large institutions for which bailouts are expected ex-ante. BHCs that maintained strong risk management before the financial crisis had lower debt costs during and after the crisis, compared to other banks. Overall, quality risk management can curtail risk exposures at BHCs and result in lower debt costs.

银行组织风险管理对非存款债务定价的影响
我们检验了组织风险管理对美国银行控股公司(BHC)的债券持有人是否重要,并发现当 BHC 的风险管理质量较低时,债务融资成本会增加。与救助会导致银行债权人道德风险的观点一致,我们发现,在事前预期会得到救助的大型机构中,债券持有人对风险管理的重视程度较低。与其他银行相比,在金融危机前保持强有力风险管理的大型控股公司在危机期间和危机后的债务成本较低。总体而言,高质量的风险管理可以降低银行控股公司的风险敞口,从而降低债务成本。
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来源期刊
CiteScore
3.00
自引率
7.10%
发文量
22
期刊介绍: The Journal of Financial Services Research publishes high quality empirical and theoretical research on the demand, supply, regulation, and pricing of financial services. Financial services are broadly defined to include banking, risk management, capital markets, mutual funds, insurance, venture capital, consumer and corporate finance, and the technologies used to produce, distribute, and regulate these services. Macro-financial policy issues, including comparative financial systems, the globalization of financial services, and the impact of these phenomena on economic growth and financial stability, are also within the JFSR’s scope of interest. The Journal seeks to promote research that enriches the profession’s understanding of financial services industries, to elevate industry and product efficiencies, as well as to inform the debate and promote the formulation of sound public policies.   Officially cited as: J Financ Serv Res
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