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Financial intermediary-coalitions
This paper studies an environment in which the investment opportunities of agents are private information and shows that financial intermediaries arise endogenously within that environment. ItExpand
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The impact of inflation on financial sector performance
Abstract A growing theoretical literature describes mechanisms whereby even predictable increases in the rate of inflation interfere with the ability of the financial sector to allocate resourcesExpand
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The Theory of Bank Risk Taking and Competition Revisited
There is a large body of literature that concludes that-when confronted with increased competition-banks rationally choose more risky portfolios. We argue that this literature has had a significantExpand
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The Stock Market's Reaction to Unemployment News: Why Bad News is Usually Good for Stocks
We find that on average, an announcement of rising unemployment is good news for stocks during economic expansions and bad news during economic contractions. Unemployment news bundles three types ofExpand
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Size and performance of banking firms: Testing the predictions of theory
Abstract In recent years, two important literatures on the theory of banking firms have developed. One examines the economic functions of banks in environments in which agents are asymmetricallyExpand
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Risk, regulation, and bank holding company expansion into nonbanking
When banking institutions can expand into other lines of business, some think they will diversify to reduce their total risk. Others think just the opposite. In this article, John H. Boyd and StanleyExpand
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Ex-dividend price behavior of common stocks
This study examines common stock prices around ex-dividend dates. Such price data usually contain a mixture of observations?some with and some without arbitrageurs and/or dividend capturers active.Expand
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Are Banks Dead? Or are the Reports Greatly Exaggerated?
This paper reexamines the conventional wisdom that commercial banking is an industry in severe decline. We find that a careful reading of the evidence does not justify this conclusion. It is trueExpand
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The evolution of debt and equity markets in economic development
Summary. As noted by Gurley and Shaw, there is a typical pattern of economic development in which the evolution of the financial system is an essential aspect of the growth process. We focus on oneExpand
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Capital Market Imperfections, International Credit Markets, and Nonconvergence
Abstract We consider a two country growth model with international capital markets. These markets fund capital investment in both countries, and operate subject to a costly state verification (CSV)Expand
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