Adachi-Sato, Meg and Vithessonthi, Chaiporn * (2017) Bank systemic risk and corporate investment: Evidence from the US. International Review of Financial Analysis, 50. pp. 151-163. ISSN 1057-5219
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Abstract
In this paper, we use three measures that arguably capture two dimensions of “bank systemic risk”, namely, (1) bank funding maturity and (2) bank asset commonality, to empirically test whether bank systemic risk has a positive effect on corporate investment. We document that in a sample of publicly listed firms in the United States over the period 1991-2013, bank systemic risk is positively associated with the firm-level investment ratio after controlling for a large set of country-level and firm-level variables. In addition, we show that a firm’s leverage strengthens the positive effect of bank systemic risk on corporate investment, suggesting that more financially constrained firms experience a larger effect of bank systemic risk on corporate investment than less financially constrained firms.
| Item Type: | Article |
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| Uncontrolled Keywords: | Banking system; Bank systemic risk; Corporate investment; Financial crisis; Growth opportunities |
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Sunway University > Sunway Business School [formerly Sunway University Business School until 2023] > Dept. Economics & Finance |
| Depositing User: | Dr Janaki Sinnasamy |
| Related URLs: | |
| Date Deposited: | 22 Jun 2017 09:10 |
| Last Modified: | 12 Oct 2020 07:31 |
| URI: | http://eprints.sunway.edu.my/id/eprint/497 |
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