Not logged in.
Quick Search - Contribution
|Title||The Determinants of Bank Capital Structure: An Empirical Investigation|
|Institution||University of Zurich|
|Faculty||Faculty of Business, Economics and Informatics|
|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.|