Carow, Kenneth A.
[VerfasserIn]
;
Kane, Edward J.
[Sonstige Person, Familie und Körperschaft];
Narayanan, Rajesh P.
[Sonstige Person, Familie und Körperschaft]National Bureau of Economic Research
Winners and Losers from Enacting the Financial Modernization Statute
Erschienen:
Cambridge, Mass: National Bureau of Economic Research, April 2005
Erschienen in:NBER working paper series ; no. w11256
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w11256
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Mode of access: World Wide Web
System requirements: Adobe [Acrobat] Reader required for PDF files
Beschreibung:
Previous studies of the announcement effects of relaxing administrative and legislative restraints show that signal events leading up to the enactment of the Financial Services Modernization Act (FSMA) increased the prices of several classes of financial-institution stocks. An unsettled question is whether the gains observed for these stocks arise mainly from projected increases in efficiency or from reductions in customer or competitor bargaining power. This paper documents that the value increase came at the expense of customers and competitors. The stock prices of credit-constrained customers declined during FSMA event windows and experienced significant increases in beta in the wake of its enactment. These findings reinforce evidence in the literature on bank mergers that large-bank consolidation is adversely affecting access to credit for capital-constrained firms