Bank capital structure: revisiting evidence from the field
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/11144/5687 |
Resumo: | This paper examines investigates bank (voluntary) capital structure decisions, revisiting a unique dataset gathered through face-to-face interviews with a sample of 51 CEOs of banks, representing 91.5 percent of the total net assets of the Portuguese banking industry, over the 1989-1998 period. Survey evidence documents that the allocation of ownership control rights, growth opportunities, reputation in banking markets, financial flexibility, information signaling, and debt tax shields are significant internal determinants of bank capital structure choice. We also found that capital regulatory discipline is the only significant external determinant. Most survey participants elicited trading off ownership control rights dilution and the benefits of debt / equity securities issuance, and the static tradeoff model, as their preferred capital structure policies. The pecking order and the market-timing theories received moderate to weak preference. The paper extends the literature, providing field evidence that capital structure choice does matter for bank value, and it can be explained within the framework of the corporate capital structure theory. |
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Bank capital structure: revisiting evidence from the fieldsurveybank capital structuretarget leveragestatic trade-offpecking ordermarket timingThis paper examines investigates bank (voluntary) capital structure decisions, revisiting a unique dataset gathered through face-to-face interviews with a sample of 51 CEOs of banks, representing 91.5 percent of the total net assets of the Portuguese banking industry, over the 1989-1998 period. Survey evidence documents that the allocation of ownership control rights, growth opportunities, reputation in banking markets, financial flexibility, information signaling, and debt tax shields are significant internal determinants of bank capital structure choice. We also found that capital regulatory discipline is the only significant external determinant. Most survey participants elicited trading off ownership control rights dilution and the benefits of debt / equity securities issuance, and the static tradeoff model, as their preferred capital structure policies. The pecking order and the market-timing theories received moderate to weak preference. The paper extends the literature, providing field evidence that capital structure choice does matter for bank value, and it can be explained within the framework of the corporate capital structure theory.CICEE. Universidade Autónoma de Lisboa2022-11-21T12:21:45Z2022-06-01T00:00:00Z2022-06info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/11144/5687eng2184-898Xhttps://doi.org/10.26619/ERBE-2022.2.1.5Santos, Mário Coutinho dosinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-01-11T02:20:06Zoai:repositorio.ual.pt:11144/5687Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T01:33:56.833974Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Bank capital structure: revisiting evidence from the field |
title |
Bank capital structure: revisiting evidence from the field |
spellingShingle |
Bank capital structure: revisiting evidence from the field Santos, Mário Coutinho dos survey bank capital structure target leverage static trade-off pecking order market timing |
title_short |
Bank capital structure: revisiting evidence from the field |
title_full |
Bank capital structure: revisiting evidence from the field |
title_fullStr |
Bank capital structure: revisiting evidence from the field |
title_full_unstemmed |
Bank capital structure: revisiting evidence from the field |
title_sort |
Bank capital structure: revisiting evidence from the field |
author |
Santos, Mário Coutinho dos |
author_facet |
Santos, Mário Coutinho dos |
author_role |
author |
dc.contributor.author.fl_str_mv |
Santos, Mário Coutinho dos |
dc.subject.por.fl_str_mv |
survey bank capital structure target leverage static trade-off pecking order market timing |
topic |
survey bank capital structure target leverage static trade-off pecking order market timing |
description |
This paper examines investigates bank (voluntary) capital structure decisions, revisiting a unique dataset gathered through face-to-face interviews with a sample of 51 CEOs of banks, representing 91.5 percent of the total net assets of the Portuguese banking industry, over the 1989-1998 period. Survey evidence documents that the allocation of ownership control rights, growth opportunities, reputation in banking markets, financial flexibility, information signaling, and debt tax shields are significant internal determinants of bank capital structure choice. We also found that capital regulatory discipline is the only significant external determinant. Most survey participants elicited trading off ownership control rights dilution and the benefits of debt / equity securities issuance, and the static tradeoff model, as their preferred capital structure policies. The pecking order and the market-timing theories received moderate to weak preference. The paper extends the literature, providing field evidence that capital structure choice does matter for bank value, and it can be explained within the framework of the corporate capital structure theory. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-11-21T12:21:45Z 2022-06-01T00:00:00Z 2022-06 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/11144/5687 |
url |
http://hdl.handle.net/11144/5687 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
2184-898X https://doi.org/10.26619/ERBE-2022.2.1.5 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
CICEE. Universidade Autónoma de Lisboa |
publisher.none.fl_str_mv |
CICEE. Universidade Autónoma de Lisboa |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799136817782456320 |