IDEAS home Printed from https://ideas.repec.org/a/eee/jbfina/v23y1999i12p1725-1743.html
   My bibliography  Save this article

The reaction of bank stock prices to news of derivatives losses by corporate clients

Author

Listed:
  • Sinkey, Joseph Jr.
  • Carter, David A.

Abstract

No abstract is available for this item.

Suggested Citation

  • Sinkey, Joseph Jr. & Carter, David A., 1999. "The reaction of bank stock prices to news of derivatives losses by corporate clients," Journal of Banking & Finance, Elsevier, vol. 23(12), pages 1725-1743, December.
    • Handle: RePEc:eee:jbfina:v:23:y:1999:i:12:p:1725-1743
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378-4266(99)00016-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Madura, Jeff & Tucker, Alan L. & Zarruk, Emilio, 1992. "Reaction of bank share prices to the Third-World debt reduction plan," Journal of Banking & Finance, Elsevier, vol. 16(5), pages 853-868, September.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. Cornett, Marcia Millon & Davidson, Wallace III & Rangan, Nanda, 1996. "Deregulation in investment banking: Industry concentration following Rule 415," Journal of Banking & Finance, Elsevier, vol. 20(1), pages 85-113, January.
    4. Millon-Cornett, Marcia H. & Tehranian, Hassan, 1989. "Stock market reactions to the depository institutions deregulation and monetary control act of 1980," Journal of Banking & Finance, Elsevier, vol. 13(1), pages 81-100, March.
    5. Clark, Jeffrey A & Perfect, Steven B, 1996. "The Economic Effects of Client Losses on OTC Bank Derivative Dealers: Evidence from the Capital Market," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(3), pages 527-545, August.
    6. Schipper, K & Thompson, R, 1983. "The Impact Of Merger-Related Regulations On The Shareholders Of Acquiring Firms," Journal of Accounting Research, Wiley Blackwell, vol. 21(1), pages 184-221.
    7. Pettway, Richard H., 1980. "Potential Insolvency, Market Efficiency, and Bank Regulation of Large Commercial Banks," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 15(1), pages 219-236, March.
    8. John J. Binder, 1985. "Measuring the Effects of Regulation with Stock Price Data," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 167-183, Summer.
    9. Smirlock, Michael & Kaufold, Howard, 1987. "Bank Foreign Lending, Mandatory Disclosure Rules, and the Reaction of Bank Stock Prices to the Mexican Debt Crisis," The Journal of Business, University of Chicago Press, vol. 60(3), pages 347-364, July.
    10. Binder, Jj, 1985. "On The Use Of The Multivariate Regression-Model In Event Studies," Journal of Accounting Research, Wiley Blackwell, vol. 23(1), pages 370-383.
    11. Pettway, Richard H., 1976. "The Effects of Large Bank Failures upon Investors' Risk Cognizance in the Commercial Banking Industry," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 11(3), pages 465-477, September.
    12. Szewczyk, Samuel H, 1992. "The Intra-industry Transfer of Information Inferred from Announcements of Corporate Security Offerings," Journal of Finance, American Finance Association, vol. 47(5), pages 1935-1945, December.
    13. Flannery, Mark J, 1998. "Using Market Information in Prudential Bank Supervision: A Review of the U.S. Empirical Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 30(3), pages 273-305, August.
    14. Karafiath, Imre & Glascock, John, 1989. "Intra-industry Effects of a Regulatory Shift: Capital Market Evidence from Penn Square," The Financial Review, Eastern Finance Association, vol. 24(1), pages 123-134, February.
    15. Pettway, Richard H & Sinkey, Joseph F, Jr, 1980. "Establishing On-Site Bank Examination Priorities: An Early-Warning System Using Accounting and Market Information," Journal of Finance, American Finance Association, vol. 35(1), pages 137-150, March.
    16. Fama, Eugene F, et al, 1969. "The Adjustment of Stock Prices to New Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(1), pages 1-21, February.
    17. Karafiath, Imre, 1988. "Using Dummy Variables in the Event Methodology," The Financial Review, Eastern Finance Association, vol. 23(3), pages 351-357, August.
    18. Jeffrey A. Clark & Steven B. Perfect, 1996. "The economic effects of client losses on OTC bank derivative dealers: evidence from the capital market," Proceedings, Federal Reserve Bank of Cleveland, issue Aug, pages 527-547.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wonho Wilson Choi & Jinyong Kim & Mingook Kim, 2016. "Derivatives holdings and market values of U.S. bank holding companies," Applied Economics, Taylor & Francis Journals, vol. 48(49), pages 4747-4757, October.
    2. SinkeyJr., Joseph F. & Carter, David A., 2000. "Evidence on the financial characteristics of banks that do and do not use derivatives," The Quarterly Review of Economics and Finance, Elsevier, vol. 40(4), pages 431-449.
    3. Kallberg, Jarl & Liu, Crocker H. & Pasquariello, Paolo, 2008. "Updating expectations: An analysis of post-9/11 returns," Journal of Financial Markets, Elsevier, vol. 11(4), pages 400-432, November.
    4. David A. Carter & Daniel A. Rogers & Betty J. Simkins & Stephen D. Treanor, 2013. "Does hedging reduce economic exposure? Hurricanes, jet fuel prices and airlines," Chapters, in: Adrian R. Bell & Chris Brooks & Marcel Prokopczuk (ed.), Handbook of Research Methods and Applications in Empirical Finance, chapter 14, pages 341-354, Edward Elgar Publishing.
    5. Carter, David A. & Simkins, Betty J., 2004. "The market's reaction to unexpected, catastrophic events: the case of airline stock returns and the September 11th attacks," The Quarterly Review of Economics and Finance, Elsevier, vol. 44(4), pages 539-558, September.
    6. Barbara A. Bliss & Jeffrey A. Clark & R. Jared DeLisle, 2018. "Bank risk, financial stress, and bank derivative use," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 38(7), pages 804-821, July.
    7. Hamill, Philip A. & Opong, Kwaku K. & McGregor, Pat, 2002. "Equity option listing in the UK: a comparison of market-based research methodologies," Journal of Empirical Finance, Elsevier, vol. 9(1), pages 91-108, January.
    8. Ken Cyree & Pinghsun Huang & James Lindley, 2012. "The Economic Consequences of Banks’ Derivatives Use in Good Times and Bad Times," Journal of Financial Services Research, Springer;Western Finance Association, vol. 41(3), pages 121-144, June.
    9. John M. Halstead & Shantaram Hegde & Linda Schmid Klein, 2004. "Orange County Bankruptcy: Financial Contagion in the Municipal Bond and Bank Equity Markets," The Financial Review, Eastern Finance Association, vol. 39(2), pages 293-315, May.
    10. Carter, David & Mazumder, Sharif & Simkins, Betty & Sisneros, Eric, 2022. "The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries," Finance Research Letters, Elsevier, vol. 44(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carter, David A. & Simkins, Betty J., 2004. "The market's reaction to unexpected, catastrophic events: the case of airline stock returns and the September 11th attacks," The Quarterly Review of Economics and Finance, Elsevier, vol. 44(4), pages 539-558, September.
    2. David A. Carter & Daniel A. Rogers & Betty J. Simkins & Stephen D. Treanor, 2013. "Does hedging reduce economic exposure? Hurricanes, jet fuel prices and airlines," Chapters, in: Adrian R. Bell & Chris Brooks & Marcel Prokopczuk (ed.), Handbook of Research Methods and Applications in Empirical Finance, chapter 14, pages 341-354, Edward Elgar Publishing.
    3. Jeff Madura & Kenneth Bartunek, 1994. "Contagion effects of the bank of new England's failure," Review of Financial Economics, John Wiley & Sons, vol. 4(1), pages 25-37, September.
    4. Elijah Brewer & William Jackson, 2000. "Requiem for a Market Maker: The Case of Drexel Burnham Lambert and Junk Bonds," Journal of Financial Services Research, Springer;Western Finance Association, vol. 17(3), pages 209-235, September.
    5. Bremer, Marc & Pettway, Richard H., 2002. "Information and the market's perceptions of Japanese bank risk: Regulation, environment, and disclosure," Pacific-Basin Finance Journal, Elsevier, vol. 10(2), pages 119-139, April.
    6. Elijah Brewer & Hesna Genay & William C. Hunter & George G. Kaufman, 1999. "Does the Japanese stock market price bank risk? evidence from financial firm failures," Working Paper Series WP-99-31, Federal Reserve Bank of Chicago.
    7. Kaen, Fred R. & Sherman, Heidemarie C. & Tehranian, Hassan, 1997. "The effects of Bundesbank discount and Lombard rate changes on German bank stocks," Journal of Multinational Financial Management, Elsevier, vol. 7(1), pages 1-25, April.
    8. Cowan, Arnold R. & Howell, Jann C. & Power, Mark L., 2002. "Wealth effects of banks' rights to market and originate annuities," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(3), pages 487-503.
    9. Elijah Brewer & William E. Jackson, 2002. "Inter-industry contagion and the competitive effects of financial distress announcements: evidence from commercial banks and life insurance companies," Working Paper Series WP-02-23, Federal Reserve Bank of Chicago.
    10. Doan, Minh Phuong & Sercu, Piet, 2021. "Modelling multiperiod patterns in stock-market reactions to events, with an application to serial acquisitions," International Review of Financial Analysis, Elsevier, vol. 77(C).
    11. H. Semih Yildirim & Seung‐Woog (Austin) Kwag & M. Cary Collins, 2006. "An Examination of the Equity Market Response to The Gramm‐Leach‐Bliley Act Across Commercial Banking, Investment Banking, and Insurance Firms," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(9‐10), pages 1629-1649, November.
    12. Abdullah Mamun & M. Kabir Hassan & Mark Johnson, 2010. "How did the Fed do? An empirical assessment of the Fed's new initiatives in the financial crisis," Applied Financial Economics, Taylor & Francis Journals, vol. 20(1-2), pages 15-30.
    13. Jared F. Egginton & James I. Hilliard & Andre P. Liebenberg & Ivonne A. Liebenberg, 2010. "What Effect Did AIG's Bailout, and the Preceding Events, Have on Its Competitors?," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 13(2), pages 225-249, September.
    14. Jane‐Sue Wang & Jing‐Twen Chen & Pin‐Huang Chou, 2008. "Market Reactions To The Passage Of The Financial Holding Company Act In Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 13(4), pages 453-472, October.
    15. Fung, Simon Y.K. & Gul, Ferdinand A. & Radhakrishnan, Suresh, 2015. "Corporate political connections and the 2008 Malaysian election," Accounting, Organizations and Society, Elsevier, vol. 43(C), pages 67-86.
    16. Carter, David & Mazumder, Sharif & Simkins, Betty & Sisneros, Eric, 2022. "The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries," Finance Research Letters, Elsevier, vol. 44(C).
    17. Ferguson, Andrew & Lam, Peter, 2016. "Government policy uncertainty and stock prices: The case of Australia's uranium industry," Energy Economics, Elsevier, vol. 60(C), pages 97-111.
    18. Mark Flannery, 2001. "The Faces of “Market Discipline”," Journal of Financial Services Research, Springer;Western Finance Association, vol. 20(2), pages 107-119, October.
    19. Christian Eckert, 2020. "Risk and risk management of spillover effects: Evidence from the literature," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(1), pages 75-104, March.
    20. Sen, Suphi & von Schickfus, Marie-Theres, 2020. "Climate policy, stranded assets, and investors’ expectations," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbfina:v:23:y:1999:i:12:p:1725-1743. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.