The relationship between capital and earnings on banking.: An article from: Journal of Money, Credit & Banking
Book Details
Author(s)ALLEN n. Berger
PublisherOhio State University Press
ISBN / ASINB00093LN8Q
ISBN-13978B00093LN88
AvailabilityAvailable for download now
MarketplaceUnited States 🇺🇸
Description
This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 1995. The length of the article is 8561 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the supplier: Contrary to the conventional wisdom, bank capital ratios are positively related to returns on equity in the 1980s. Higher capital Granger-caused higher earnings and vice versa for U.S. banks, 1983-1989. The surprising positive Granger-causation from capital to earnings occurred primarily through lower interest rates paid on uninsured purchased funds. The data support the hypothesis that expected bankruptcy costs for banks increased substantially in the 1980s, raising optimal capital ratios. The causation from capital to earnings became negative in the early 1990s, when aggregate risk, regulation, and earnings changed, but the findings still supported the expected bankruptcy costs hypothesis. (Printed by permission of the publisher.)
Citation Details
Title: The relationship between capital and earnings on banking.
Author: ALLEN n. Berger
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1995
Publisher: Ohio State University Press
Volume: v27 Issue: n2 Page: p432(25)
Distributed by Thomson Gale
From the supplier: Contrary to the conventional wisdom, bank capital ratios are positively related to returns on equity in the 1980s. Higher capital Granger-caused higher earnings and vice versa for U.S. banks, 1983-1989. The surprising positive Granger-causation from capital to earnings occurred primarily through lower interest rates paid on uninsured purchased funds. The data support the hypothesis that expected bankruptcy costs for banks increased substantially in the 1980s, raising optimal capital ratios. The causation from capital to earnings became negative in the early 1990s, when aggregate risk, regulation, and earnings changed, but the findings still supported the expected bankruptcy costs hypothesis. (Printed by permission of the publisher.)
Citation Details
Title: The relationship between capital and earnings on banking.
Author: ALLEN n. Berger
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1995
Publisher: Ohio State University Press
Volume: v27 Issue: n2 Page: p432(25)
Distributed by Thomson Gale
