Capital management and bank value

Handorf, William C.
September 2011
Journal of Banking Regulation;Sep2011, Vol. 12 Issue 4, p331
Academic Journal
Many banks are under pressure to increase funding by capital, especially equity capital. Return on assets increases, the leverage multiplier declines and the return required by investors should decline as banks increase reliance on equity financing. This article empirically demonstrates the importance of risk and profitability on bank value, and then conceptually illustrates how the price/book ratio and related value should be affected by those banking units either able to issue equity capital or change their capital structure.


Related Articles

  • Section 338 consistency rules finalized.  // Practical Accountant;Mar94, Vol. 27 Issue 3, p12 

    Reports that regulations on stock and asset consistency rules issued by the Internal Revenue Service have been finalized. Narrowing of the scope of the old rules; Issuance of temporary and proposed consistency rules for target foreign corporations; Date of effectivity; Application on an elective...

  • STOCK RETURN, INFLATION, AND THE DU PONT IDENTITY.  // Journal of the Academy of Business & Economics;2010, Vol. 10 Issue 4, p169 

    No abstract available.

  • High Yield Fund Performance.  // High Yield Report;6/10/2002, Vol. 13 Issue 23, p7 

    Presents a chart depicting the ranking of high yield performance of the business enterprises as of June 2002. Estimation of the total assets; Name of fund; Assessment of the percentage of change.

  • The temporal dimension of risk. Estrada, Javier // Quarterly Review of Economics & Finance;Summer2000, Vol. 40 Issue 2, p189 

    If returns are stationary, then the risk of an asset in any time frequency can be estimated from the risk of the asset in any other time frequency through a simple linear rescaling. This implies that short-term risk carries reliable information about long-term risk, and both data frequencies and...

  • South African Assets Looking Good Over Short Term.  // Emerging Markets Monitor;10/4/2010, Vol. 16 Issue 26, p22 

    The article evaluates the performance of the assets and equities of South Africa amid trends in global markets involving yields and commodities.

  • Asset pricing. Campbell, John Y. // NBER Reporter;Spring97, p1 

    Discusses research results pertaining to asset pricing. Cross-sectional patterns in stock returns; Time-variation in the reward for risk; Option prices, changing volatility and market microstructure; Diversification, risk-sharing and new financial markets.

  • Time to go IT bargain hunting. Jones, Llewellyn // Finance Week;01/12/2001, p37 

    Examines how to use tangible net asset value (NAV) figures in selecting stocks. Opportunity for investors to hunt for bargain-priced technology stocks; Benefits of investing equal amount in each company; Danger of placing too much trust in published NAV figures. INSET: To work out tangible net...

  • ASSET CLASS STRATEGY.  // Emerging Markets Monitor;1/16/2012, Vol. 17 Issue 39, p23 

    The article discusses the asset class strategies in different regions around the world. In Europe, the expected increase in equities will be a positive development for Polish stocks due to their relatively robust macro situation and positive technical condition. The developments in the Middle...

  • 2001 results for 239 Chicago-area banks.  // Crain's Chicago Business;6/17/2002, Vol. 25 Issue 24, p23 

    Presents several charts depicting the ranking of commercial banks in Chicago, Illinois. Total equity capital of Broadway Bank; Percent return on average assets of Lakeside Bank; Net income of First Bank of Oak park.


Read the Article


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

Try another library?
Sign out of this library

Other Topics