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Was the 2007 crisis really a global banking crisis?

Listed author(s):
  • Shehzad, Choudhry Tanveer
  • De Haan, Jakob

We argue that the 2007 crisis was not a global banking crisis. Stock prices of banks in emerging countries faced a temporary shock but quickly recovered, while stock prices of banks located in industrial countries remained much lower than before the 2007 crisis. Our results also suggest that stock prices of large banks were affected more during the crisis than those of small banks. We also find that managerial efficiency, loan quality, leverage, and the volume of outstanding loans affect bank stock prices.

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File URL: http://www.sciencedirect.com/science/article/pii/S1062940812000496
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Article provided by Elsevier in its journal The North American Journal of Economics and Finance.

Volume (Year): 24 (2013)
Issue (Month): C ()
Pages: 113-124

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Handle: RePEc:eee:ecofin:v:24:y:2013:i:c:p:113-124
DOI: 10.1016/j.najef.2012.04.002
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620163

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