Risk and the Corporate Structure of Banks
AbstractWe identify different sources of risk as important determinants of banks' corporate structures when expanding into new markets. Subsidiary-based corporate structures benefit from greater protection against economic risk because of affiliate-level limited liability, but are more exposed to the risk of capital expropriation than are branches. Thus, branch-based structures are preferred to subsidiary-based structures when expropriation risk is high relative to economic risk, and vice versa. Greater cross-country risk correlation and more accurate pricing of risk by investors reduce the differences between the two structures. Furthermore, a bank's corporate structure affects its risk taking and affiliate size. Copyright (c) 2010 the American Finance Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Finance Association in its journal The Journal of Finance.
Volume (Year): 65 (2010)
Issue (Month): 3 (06)
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- M. Vittoria Levati & Jianying Qiu & Prashanth Mahagaonkar, 2011.
"Testing the Modigliani-Miller theorem directly in the lab,"
Jena Economic Research Papers
2011-021, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- M. Levati & Jianying Qiu & Prashanth Mahagaonkar, 2012. "Testing the Modigliani-Miller theorem directly in the lab," Experimental Economics, Springer, vol. 15(4), pages 693-716, December.
- Niepmann, Friederike, 2013.
"Banking across borders,"
19/2013, Deutsche Bundesbank, Research Centre.
- Friederike Niepmann, 2011. "Banking across Borders," DNB Working Papers 325, Netherlands Central Bank, Research Department.
- Friederike Niepmann, 2013. "Banking across Borders," CESifo Working Paper Series 4120, CESifo Group Munich.
- Friederike Niepmann, 2012. "Banking across borders," Staff Reports 576, Federal Reserve Bank of New York.
- Lin, Jane-Raung & Chung, Huimin & Hsieh, Ming-Hsiang & Wu, Soushan, 2012. "The determinants of interest margins and their effect on bank diversification: Evidence from Asian banks," Journal of Financial Stability, Elsevier, vol. 8(2), pages 96-106.
- Diemo Dietrich & Tobias Knedlik & Axel Lindner, 2011. "Central and Eastern European countries in the global financial crisis: a typical twin crisis?," Post-Communist Economies, Taylor & Francis Journals, vol. 23(4), pages 415-432, April.
- Chen , Yehning & Hasan, Iftekhar, 2011.
"Subordinated debt, market discipline, and bank risk,"
Research Discussion Papers
20/2011, Bank of Finland.
- Yehning Chen & Iftekhar Hasan, 2011. "Subordinated Debt, Market Discipline, and Bank Risk," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(6), pages 1043-1072, 09.
- Diemo Dietrich & Uwe Vollmer, 2010.
"International Banking and Liquidity Allocation,"
Journal of Financial Services Research,
Springer, vol. 37(1), pages 45-69, February.
- Diemo Dietrich & Uwe Vollmer, 2006. "Banks’ Internationalization Strategies: The Role of Bank Capital Regulation," IWH Discussion Papers 18, Halle Institute for Economic Research.
- DellAriccia, Giovanni & Laeven, Luc & Marquez, Robert, 2011.
"Monetary Policy, Leverage, and Bank Risk-taking,"
CEPR Discussion Papers
8199, C.E.P.R. Discussion Papers.
- Eugenio Cerutti, 2013. "Banksâ€™ Foreign Credit Exposures and Borrowersâ€™ Rollover Risks Measurement, Evolution and Determinants," IMF Working Papers 13/9, International Monetary Fund.
- Elisa Luciano & Clas Wihlborg, 2013. "The Organization of Bank Affiliates; A Theoretical Perspective on Risk and Efficiency," ICER Working Papers 06-2013, ICER - International Centre for Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.