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Contribution Details

Type Master Thesis
Scope Discipline-based scholarship
Title The Determinants of Bank Capital Structure: An Empirical Investigation
Organization Unit
Authors
  • Dogukan Hamza Özyurt
Supervisors
  • Jean-Charles Rochet
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Date October 2016
Abstract Text The thesis provides evidence that the capital structure of the 100 largest publicly-traded U.S. and European commercial banks and bank-holding companies during 2004 to 2014 can be mostly explained with standard cross-sectional determinants of non-financial firms' leverage. The model composition and the extension follow the structure of Gropp and Heider (2010). However, adding risk to the model increases the significance of the model. In addition, there is evidence that deposit insurance coverage has an impact on banks' capital structure. Since the sample period contains the global financial crisis and there is an effect on the overall estimations, to overcome this issue the entire sample pe­ riod is divided into three sub-periods: before the global fmancial crisis (2004-2006), dur­ ing the crisis (2007-2010) and after the crisis (2011-2014). The estimations show that there is a significant bias on the estimates across the entire sample period. The crisis sub­ period strongly affects the estimations of the entire sample period, whereas the after-crisis period has a weaker effect. The best model fit is reached with data before the crisis period.
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