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Could sub-debts of banks be potential tools for supervision? Empirical study with data set 1999-2007.

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dc.contributor.advisor VanHoose, David D.
dc.contributor.author Zhang, Lin, 1983-
dc.contributor.other Baylor University. Dept. of Economics. en
dc.date.copyright 2008-05
dc.identifier.uri http://hdl.handle.net/2104/5183
dc.description.abstract Most previous research has discussed how spreads of sub-debts could be tools to signal the risks of banks. However, studies have focused on data preceding 1999, when the Financial Modernization Act (FMA) has not yet been implemented. In this thesis, I will concentrate on evaluating if the spreads of sub-debts could still serve as signals for the risks of banks after the implementation of FMA. From the results of regression I find that the spreads of sub-debts could still signal risks of banks in the post-FMA period. Compared to previous studies, I got different results about the effects of market leverage and logarithm of total assets on sub-debts spreads. Profitability of banks, ROA and ROE, has opposite influences on the spreads, and capital ratios have insignificant effects. Further, sub-debt spreads achieve their highest values before the 2001 recession and decreased after that. The information content of sub-debt yield spreads changes in the non-preferred economic conditions, such as recessions. en
dc.rights Baylor University theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. Contact librarywebmaster@baylor.edu for inquiries about permission. en
dc.subject Subordination agreements (Finance) en
dc.subject Banking law --- United States. en
dc.subject Financial institutions -- Law and legislation --- United States. en
dc.subject Banks and banking --- United States. en
dc.title Could sub-debts of banks be potential tools for supervision? Empirical study with data set 1999-2007. en
dc.type Thesis en
dc.description.degree M.S.Eco. en
dc.rights.accessrights Baylor University access only en
dc.contributor.department Economics. en


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