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Why High Leverage is Optimal for Banks
16 references·1 citing·37 second hop
Why High Leverage is Optimal for Banks (2013)Why High Leverage is Optimal for BanksThe Aggregate Demand for Treasury Debt (2012)The Aggregate Demand for Trea…A Macroprudential Approach to Financial Regulation (2011)A Macroprudential Approach to…Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit‐taking (2002)Banks as Liquidity Providers:…Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking (2001)Liquidity Risk, Liquidity Cre…A Theory of Bank Capital (2000)A Theory of Bank CapitalPrivate and Public Supply of Liquidity (1998)Private and Public Supply of …Financial Intermediation, Loanable Funds, and The Real Sector (1997)Financial Intermediation, Loa…The Limits of Arbitrage (1995)The Limits of ArbitrageContinuous-Time Finance. (1991)Continuous-Time Finance.Financial Intermediaries and Liquidity Creation (1990)Financial Intermediaries and …Financial Intermediation and Delegated Monitoring (1984)Financial Intermediation and …Bank Runs, Deposit Insurance, and Liquidity (1983)Bank Runs, Deposit Insurance,…DEBT AND TAXES* (1977)DEBT AND TAXES*Dividend Policy, Growth, and the Valuation of Shares (1961)Dividend Policy, Growth, and …Liquidity Preference as Behavior Towards Risk (1958)Liquidity Preference as Behav…The General Theory of Employment, Interest and Money. (1936)The General Theory of Employm…How to Get Banks to Take Less Risk and Disclose Bad News (2012)How to Get Banks to Take Less…Monitoring and Reputation: The Choice between Bank Loans and Directly Placed Debt (1991)Credit Cycles (1997)Tracing the Impact of Bank Liquidity Shocks: Evidence from an Emerging Market (2008)Deciphering the Liquidity and Credit Crunch 2007–2008 (2009)A model of investor sentiment /CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)The Cross-Section of Expected Stock Returns (1992)Investor Sentiment and the Cross‐Section of Stock Returns (2006)Market Liquidity and Funding Liquidity (2008)The arbitrage theory of capital asset pricing (1976)Moral Hazard and Observability (1979)The Benefits of Lending Relationships: Evidence from Small Business Data (1994)DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES (1956)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)The Pricing of Options and Corporate Liabilities (1973)Determinants of corporate borrowing (1977)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Asset pricing and the bid-ask spread (1986)Theory of Financial Decision Making. (1988)The cost of capital, corporation finance and the theory of investment (2008)The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States (2013)Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression (1983)Financial Contagion (2000)A Monetary History of the United States, 1867-1960 (2017)Debt Maturity Structure and Liquidity Risk (1991)Liquidation Values and Debt Capacity: A Market Equilibrium Approach (1992)Default and Renegotiation: A Dynamic Model of Debt (1998)Firms, Contracts, and Financial Structure (1995)Does Distance Still Matter? The Information Revolution in Small Business Lending (2002)How does capital affect bank performance during financial crises? (2013)EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* (1970)Risk, Return, and Equilibrium: Empirical Tests (1973)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)Political Parties and Macroeconomic Policy (1977)Dividend yields and expected stock returns (1988)Modelling Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Framework (2014)
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References

  • 1936The General Theory of Employment, Interest and Money.12,562 cited
  • 1983Bank Runs, Deposit Insurance, and Liquidity9,689 cited
  • 1984Financial Intermediation and Delegated Monitoring8,393 cited
  • 1961Dividend Policy, Growth, and the Valuation of Shares6,554 cited
  • 1995The Limits of Arbitrage5,282 cited
  • 1958Liquidity Preference as Behavior Towards Risk3,916 cited
  • 1997Financial Intermediation, Loanable Funds, and The Real Sector3,910 cited
  • 1977DEBT AND TAXES*2,896 cited
  • 2001Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking2,006 cited
  • 1998Private and Public Supply of Liquidity1,821 cited
  • 1991Continuous-Time Finance.1,788 cited
  • 2012The Aggregate Demand for Treasury Debt1,591 cited
  • 2002Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit‐taking1,447 cited
  • 2000A Theory of Bank Capital1,407 cited
  • 2011A Macroprudential Approach to Financial Regulation1,087 cited
  • 1990Financial Intermediaries and Liquidity Creation1,078 cited

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  • 2012How to Get Banks to Take Less Risk and Disclose Bad News24 cited