Is the information produced in the stock market useful for depositors?
AbstractThe information produced by sophisticated investors in the stock market may be useful for uninformed depositors. Since much information is not produced for Shinkin banks (cooperatives) in Japan, relying on the information from the stock market may be an efficient decision for these depositors. This paper provides empirical evidence that Shinkin depositors seemed to withdraw funds after observing a fall in the stock prices of other banks.
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Bibliographic InfoArticle provided by Elsevier in its journal Finance Research Letters.
Volume (Year): 6 (2009)
Issue (Month): 1 (March)
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Web page: http://www.elsevier.com/locate/frl
Bank failure Contagion Informational asymmetry Depositor discipline;
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