Differential pricing of discretionary , nondiscretionary and noise components of loan fair values =

Abstract

Using a sample of banks, this study examines the capital market pricing implications of three components of loan fair values. We find that the nondiscretionary component is priced on a dollar-for-dollar basis, the discretionary component is assigned a significantly larger multiple than the nondiscretionary component and the noise component is not priced… (More)

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