Journal
JOURNAL OF FINANCIAL STABILITY
Volume 30, Issue -, Pages 79-91Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jfs.2017.04.004
Keywords
Peer bank behavior; Bank-specific characteristics; Leverage decision; Financial institution; Economic policy uncertainty
Categories
Funding
- Ministry of Science and Technology of Taiwan [MOST 104-2628-H-110-001]
Ask authors/readers for more resources
This paper explores the determinants for the leverage decision of financial institutions via the channels of bank-specific characteristics, peer bank behavior, and economic policy uncertainties, which are critical to appropriately control the risk of the financial system and explain the cross-sectional heterogeneity in risk-taking behavior among financial institutions. Our results indicate that bank-specific characteristics are the most influential one among the three channels for leverage decision of financial institutions, while the other two channels also exhibit significant effects on the leverage decision. We further note that economic policy uncertainty may affect their leverage decisions through the channels of their shifting lending behavior and risk-taking capacity. (C) 2017 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available