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Self-Regulation and Stock Listing Decision of Banks

Author

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  • Sarah El Joueidi

    () (CREA, Université du Luxembourg)

Abstract

This paper studies the banks' decisions to self-regulate their activities and their selection of the financial markets where they raise their capital. We show that in an economy with a single financial market, self-regulation increases investors' demand for banks' stocks while weaker bank concentration reduces incentives to self-regulate. In addition, in an economy with separate financial markets, banks preferably raise capital in financial markets hosting larger number of investors. However, when self-regulation costs vary across financial places, banks may list their stocks in the country with the smaller number of investors.

Suggested Citation

  • Sarah El Joueidi, 2017. "Self-Regulation and Stock Listing Decision of Banks," CREA Discussion Paper Series 17-05, Center for Research in Economic Analysis, University of Luxembourg.
  • Handle: RePEc:luc:wpaper:17-05
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    File URL: http://wwwfr.uni.lu/content/download/99336/1195516/file/2017_05%20%20Self-Regulation%20and%20Stock%20Listing%20Decision%20of%20Banks.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Endogenous quality; self-regulation; economic geography; banks; financial markets; macroprudential effort.;

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