An empirical analysis of the relation between bank charter value and risk taking

Jijun Niu

The Quarterly Review of Economics and Finance, 2012, vol. 52, issue 3, 298-304

Abstract: This paper examines the relation between bank charter value and risk taking. Using a sample of U.S. banks over the period 1990–2006, we find that the relation is U-shaped: as charter value increases, risk taking first decreases and then increases. This finding is robust across alternative measures of risk taking and an estimation method that accounts for the joint determination of charter value and risk taking.

Keywords: Bank; Charter value; Risk taking (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:52:y:2012:i:3:p:298-304

DOI: 10.1016/j.qref.2012.05.001

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