search query: @indexterm Banks / total: 1629
reference: 215 / 1629
| Author: | Hughes, J. P. Mester, L. J. Moon, C.-G. |
| Title: | Are scale economies in banking elusive or illusive? Evidence obtained by incorporating capital structure and risk-taking into models of bank production |
| Journal: | Journal of Banking and Finance
2001 : DEC, VOL. 25:12, p. 2169-2208 |
| Index terms: | BANKS BANKING PRODUCTION RISK |
| Language: | eng |
| Abstract: | This paper explores how to incorporate banks' capital structure and risk-taking into models of production. In doing so, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without considering the underlying microeconomics of production and (2) the literature that uses dual profit and cost functions to study microeconomics of bank, production without explicitly considering how banks' production decisions influence their riskiness. Various production models that differ in how they account for capital structure and in the objectives they impute to bank managers - cost minimization versus value maximization - are estimated using U.S. data on highest-level bank holding companies. |
SCIMA