The impact of corporate structure on the value of banks: A theoretical approach

Brooks, Robert; Gup, Benton
October 2004
Journal of International Banking Regulation;Oct2004, Vol. 6 Issue 1, p91
Academic Journal
Many large banks, such as Citigroup, have complex organisational structures with dozens, if not hundreds, of separately incorporated divisions. The authors show how banks can enhance their shareholder value by incorporating their divisions separately. The traditional theory of the firm does not consider multi-division banks, or the fact that one or more of those divisions may have negative values. They use option theory to demonstrate the value of limited liability in a multi-division bank and show that managers can create share-holder value through legal/organisational structure design.


Related Articles

  • Umpqua Bank, Oregon, Creates Eco-Banking Division.  // ABA Bank Marketing;May2009, Vol. 41 Issue 4, p5 

    The article reports on the creation of a new eco-banking division in Portland, Oregon by Umpqua Bank. Dan Weld, a Leadership in Energy and Environmental Design (LEED) accredited professional, would serve as the manager of the new division. The division is aimed at reducing energy and resource...

  • BankMobile Creates Tech Division, Recruits Digital Banking Vets. Macheel, Tanaya // American Banker;8/27/2015, Vol. 180 Issue 134, p1 

    The article offers information on the BankMobile Technologies technology development division being launched by BankMobile, a division of bank holding company Customers Bancorp in Wyomissing, Pennsylvania, as of August 2015.

  • CME Courses for Breast MRI CAD. Vasko, Cat // Medical Imaging;Sep2007, Vol. 22 Issue 9, p15 

    The article announces the educational grant received by the International Center for Postgraduate Medical Education from Confirma Inc.

  • Calvin Price State Forest Tour Scheduled.  // State Journal (WV);12/14/2012, Vol. 28 Issue 48, pT8 

    The article reports on the public tour of West Virginia's Division of Forestry to be held on December 15, 2012 at Calvin Price State Forest in Pocahontas County, West Virginia.

  • Dentatus forms DMX Implants Division.  // Proofs;Mar2011, Vol. 94 Issue 2, p25 

    The article reports on the formation by Dentatus of the DMX Implants division to meet the demands of its implant product lines.

  • Rexam creates new AMEA division.  // CanTech International;Sep2012, p11 

    The article informs of Rexam PLC for creating the new division namely AMEA division, for it operations in Asia, the Middle East and Africa.

  • Siemens reshuffles North American Industry.  // Plant Engineering;Nov2011, Vol. 65 Issue 9, p24 

    The article focuses on the formation of Siemens AG's Infrastructure and Cities (IC) sector in North America which will manage the company's power distribution and transportation in the region.

  • Restructuring roundup.  // Medical Device Daily;1/25/2012, Vol. 16 Issue 16, p4 

    This article reports on the creation of a Optics & Photonics (IOP) platform by Idex in 2012.

  • Temporary bridges.  // Construction Europe;Jul/Aug2012, Vol. 23 Issue 6, p55 

    The article reports on the formation of Groundforce's new division called Groundforce Bridge offering temporary bridge installations for various applications in Great Britain.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics