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Diversification and the cost of debt of bank holding companies
16 references·16 citing·36 second hopsampled
Diversification and the cost of debt of bank holding companies (2007)Diversification and the cost of debt of b…Diversification in Banking: Is Noninterest Income the Answer? (2004)Diversification in Banking: I…Effect of Corporate Governance on Bond Ratings and Yields: The Role of Institutional Investors and Outside Directors* (2003)Effect of Corporate Governanc…Explaining the Diversification Discount (2002)Explaining the Diversificatio…The Dark Side of Internal Capital Markets: Divisional Rent‐Seeking and Inefficient Investment (2000)The Dark Side of Internal Cap…Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure (1998)Theory of the Firm: Manageria…Diversification, Size, and Risk at Bank Holding Companies (1997)Diversification, Size, and Ri…Agency Problems, Equity Ownership, and Corporate Diversification (1997)Agency Problems, Equity Owner…The Maturity Structure of Corporate Debt (1995)The Maturity Structure of Cor…Management entrenchment (1989)Management entrenchmentAgency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)Agency Costs of Free Cash Flo…The market for corporate control (1983)The market for corporate cont…Risk Reduction as a Managerial Motive for Conglomerate Mergers (1981)Risk Reduction as a Manageria…Determinants of corporate borrowing (1977)Determinants of corporate bor…Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Theory of the firm: Manageria…The option pricing model and the risk factor of stock (1976)The option pricing model and …Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Diversification, efficiency and risk of banks: Evidence from emerging economies (2020)Diversification, efficiency a…Asset diversification and bank performance: Evidence from three Asian countries with a dual banking system (2018)Asset diversification and ban…The perennial challenge to counter Too-Big-to-Fail in banking: Empirical evidence from the new international regulation dealing with Global Systemically Important Banks (2015)The perennial challenge to co…Income diversification and bank efficiency in an emerging market (2015)Income diversification and ba…The long-term role of non-traditional banking in profitability and risk profiles: Evidence from a panel of U.S. banking institutions (2014)The long-term role of non-tra…International diversification and risk of multinational banks: Evidence from the pre-crisis period (2014)International diversification…The moderating role of brand diversification on the relationship between geographic diversification and firm performance in the US lodging industry (2013)The moderating role of brand …Structural Bank Regulation Initiatives: Approaches and Implications (2013)Structural Bank Regulation In…How Does Diversification Impact Bank Stability? The Role of Globalization, Regulations, and Governance Environments (2013)How Does Diversification Impa…Bank distress prediction: Empirical evidence from the Gulf Cooperation Council countries (2013)Bank distress prediction: Emp…Does corporate governance play an important role in BHC performance? Evidence from the U.S. (2012)Does corporate governance pla…Bank stability and managerial compensation (2012)Bank stability and managerial…Bank holding company diversification and production efficiency (2012)Bank holding company diversif…The impact of management and board ownership on profitability in banks with different strategies (2011)The impact of management and …Bank risk and return: the impact of bank non‐interest income (2010)Bank risk and return: the imp…Do financial conglomerates create or destroy value? Evidence for the EU (2009)Do financial conglomerates cr…The Pricing of Options and Corporate Liabilities (1973)Agency Problems and the Theory of the Firm (1980)Agency Theory: An Assessment and Review (1989)Managerial incentives and risk-taking☆ (2005)Who makes acquisitions? CEO overconfidence and the market's reaction☆ (2008)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Dividend Policy, Growth, and the Valuation of Shares (1961)Corporate financing and investment decisions when firms have information that investors do not have (1984)The Capital Structure Puzzle (1984)A Survey of Corporate Governance (1997)Separation of Ownership and Control (1983)The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)Corporate Governance and Equity Prices (2003)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)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)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)On Persistence in Mutual Fund Performance (1997)The Determinants of Capital Structure Choice (1988)Insiders and Outsiders: The Choice between Informed and Arm's-Length Debt (1992)What Do We Know about Capital Structure? Some Evidence from International Data (1995)The determinants and implications of corporate cash holdings (1999)The theory and practice of corporate finance: evidence from the field (2001)Markets and Hierarchies: Analysis and Antitrust Implications. (1976)Management ownership and market valuation (1988)The Nature of the Firm (1937)Law and Finance (1998)Agency costs of free cash flow, corporate finance, and takeovers (1996)Financial and Legal Constraints to Growth: Does Firm Size Matter? (2005)Business Groups in Emerging Markets: Paragons or Parasites? (2007)Liquidity and leverage (2008)Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? (1997)Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms (2003)R2 around the world: New theory and new tests☆ (2005)Over-investment of free cash flow (2006)
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References

  • 1976Theory of the firm: Managerial behavior, agency costs and ownership structure71,441 cited
  • 1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers17,216 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1977Determinants of corporate borrowing13,160 cited
  • 1983The market for corporate control4,145 cited
  • 1981Risk Reduction as a Managerial Motive for Conglomerate Mergers2,775 cited
  • 1998Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure2,749 cited
  • 1989Management entrenchment2,155 cited
  • 1995The Maturity Structure of Corporate Debt1,856 cited
  • 2000The Dark Side of Internal Capital Markets: Divisional Rent‐Seeking and Inefficient Investment1,556 cited
  • 2002Explaining the Diversification Discount1,372 cited
  • 1997Agency Problems, Equity Ownership, and Corporate Diversification1,305 cited
  • 1976The option pricing model and the risk factor of stock1,239 cited
  • 2003Effect of Corporate Governance on Bond Ratings and Yields: The Role of Institutional Investors and Outside Directors*1,193 cited
  • 2004Diversification in Banking: Is Noninterest Income the Answer?1,192 cited

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  • 1997Diversification, Size, and Risk at Bank Holding Companies1,092 cited
  • Cited by

    • 2012Bank stability and managerial compensation136 cited
    • 2013Structural Bank Regulation Initiatives: Approaches and Implications94 cited
    • 2012Bank holding company diversification and production efficiency93 cited
    • 2015The perennial challenge to counter Too-Big-to-Fail in banking: Empirical evidence from the new international regulation dealing with Global Systemically Important Banks84 cited
    • 2012Does corporate governance play an important role in BHC performance? Evidence from the U.S.81 cited
    • 2009Do financial conglomerates create or destroy value? Evidence for the EU81 cited
    • 2018Asset diversification and bank performance: Evidence from three Asian countries with a dual banking system77 cited
    • 2013How Does Diversification Impact Bank Stability? The Role of Globalization, Regulations, and Governance Environments77 cited
    • 2010Bank risk and return: the impact of bank non‐interest income74 cited
    • 2015Income diversification and bank efficiency in an emerging market74 cited
    • 2011The impact of management and board ownership on profitability in banks with different strategies74 cited
    • 2013Bank distress prediction: Empirical evidence from the Gulf Cooperation Council countries73 cited
    • 2013The moderating role of brand diversification on the relationship between geographic diversification and firm performance in the US lodging industry68 cited
    • 2014International diversification and risk of multinational banks: Evidence from the pre-crisis period66 cited
    • 2014The long-term role of non-traditional banking in profitability and risk profiles: Evidence from a panel of U.S. banking institutions62 cited
    • 2020Diversification, efficiency and risk of banks: Evidence from emerging economies60 cited