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All Outputs (26)

Three Decades of Failed Bank Acquisitions (2024)
Journal Article
Spokeviciute, L., Jahanshahloo, H., Keasey, K., & Vallascas, F. (2025). Three Decades of Failed Bank Acquisitions. Journal of Banking and Finance, 170, Article 107336. https://doi.org/10.1016/j.jbankfin.2024.107336

Using more than 30 years of data, we document that the acquisition of failed US commercial banks through FDIC-managed Purchase and Assumption (P&A) transactions leads to long-term improvements in the profitability and loan risk of the combined entity... Read More about Three Decades of Failed Bank Acquisitions.

Bond Issuance and the Funding Choices of European Banks: The Consequences of Public Debt (2023)
Journal Article
Rancan, M., Cariboni, J., Keasey, K., & Vallascas, F. (2023). Bond Issuance and the Funding Choices of European Banks: The Consequences of Public Debt. Journal of Empirical Finance, 74, Article 101417. https://doi.org/10.1016/j.jempfin.2023.101417

European banks raise less funds in the bond market when there is a larger public debt in their national economies and this is reflected in lower leverage. We exploit numerous sources of heterogeneity in our data to demonstrate this result is driven b... Read More about Bond Issuance and the Funding Choices of European Banks: The Consequences of Public Debt.

Small Business Lending and Regulation for Small Banks (2021)
Journal Article
Srivastav, A., & Vallascas, F. (2022). Small Business Lending and Regulation for Small Banks. Management Science, 68(10), 7742-7760. https://doi.org/10.1287/mnsc.2021.4176

Since May 2015 several U.S. Bank Holding Companies (BHCs) have been newly classified as small banks by regulators, thus benefiting from a friendlier regulatory capital environment. Using a difference-in-differences setting, we show that less regulati... Read More about Small Business Lending and Regulation for Small Banks.

Board Financial Expertise and the Capital Decisions of US Banks (2021)
Journal Article
Gilani, U., Keasey, K., & Vallascas, F. (2021). Board Financial Expertise and the Capital Decisions of US Banks. Journal of Corporate Finance, 71, Article 102091. https://doi.org/10.1016/j.jcorpfin.2021.102091

We examine whether increasing financial expertise among independent directors facilitates bank capital decisions that promote financial stability. We find US banks with more financial expert independent directors opt for higher target capital ratios... Read More about Board Financial Expertise and the Capital Decisions of US Banks.

The Wolves of Wall Street? Managerial Attributes and Bank Risk (2021)
Journal Article
Hagendorff, J., Saunders, A., Steffen, S., & Vallascas, F. (2021). The Wolves of Wall Street? Managerial Attributes and Bank Risk. Journal of Financial Intermediation, 47, https://doi.org/10.1016/j.jfi.2021.100921

We find that chief executive officers and chief financial officers exert significant individual effects on bank risk. Manager transitions, including transitions generated by plausibly exogenous manager departures, lead to abnormally large changes in... Read More about The Wolves of Wall Street? Managerial Attributes and Bank Risk.

Does Debt Concentration Depend on the Risk-Taking Incentives in CEO Compensation? (2020)
Journal Article
Castro, P., Keasey, K., Amor-Tapia, B., Tascon, M., & Vallascas, F. (2020). Does Debt Concentration Depend on the Risk-Taking Incentives in CEO Compensation?. Journal of Corporate Finance, 64, Article 101684. https://doi.org/10.1016/j.jcorpfin.2020.101684

Using a sample of US non-financial firms we show that an increase in risk-taking incentives in CEO pay is associated with a greater debt concentration by debt type. This result holds in various empirical settings that account for endogeneity and is i... Read More about Does Debt Concentration Depend on the Risk-Taking Incentives in CEO Compensation?.

When Banks Grow Too Big for Their National Economies: Tail Risks, Risk Channels, and Government Guarantees (2018)
Journal Article
Hagendorff, J., Keasey, K., & Vallascas, F. (2018). When Banks Grow Too Big for Their National Economies: Tail Risks, Risk Channels, and Government Guarantees. Journal of Financial and Quantitative Analysis, 53(5), 2041-2066. https://doi.org/10.1017/s0022109018000327

Banks are growing ever larger compared to their national economies. We show that increases in relative bank size (measured as a bank’s liabilities divided by national GDP) are linked to banks displaying higher tail risk. This effect is not entirely d... Read More about When Banks Grow Too Big for Their National Economies: Tail Risks, Risk Channels, and Government Guarantees.

CEO turnover in large banks: Does tail risk matter? (2017)
Journal Article
Srivastav, A., Keasey, K., Mollah, S., & Vallascas, F. (2017). CEO turnover in large banks: Does tail risk matter?. Journal of Accounting and Economics, 64(1), 37-55. https://doi.org/10.1016/j.jacceco.2017.05.001

In a cross-country setting we show the probability of a forced CEO turnover in large banks is positively associated with idiosyncratic tail risk. This finding is strengthened the greater the competition in the banking industry and when stakeholders h... Read More about CEO turnover in large banks: Does tail risk matter?.

Does the impact of board independence on large bank risks change after the global financial crisis? (2017)
Journal Article
Vallascas, F., Mollah, S., & Keasey, K. (2017). Does the impact of board independence on large bank risks change after the global financial crisis?. Journal of Corporate Finance, 44, 149-166. https://doi.org/10.1016/j.jcorpfin.2017.03.011

The view that the independent directors of large banks should contribute to safeguarding the interests of bank creditors and taxpayers, by exercising a stringent risk oversight of bank executives, has gained ground in the aftermath of the 2007–2009 c... Read More about Does the impact of board independence on large bank risks change after the global financial crisis?.

Business Experts on Public Sector Boards: What Do They Contribute? (2017)
Journal Article
Kirkpatrick, I., Vallascas, F., & Veronesi, G. (2017). Business Experts on Public Sector Boards: What Do They Contribute?. Public Administration Review, 77(5), 754-765. https://doi.org/10.1111/puar.12754

Although public management reforms around the world have given business experts an enhanced role in the governance of public sector organizations, the impact of this change is poorly understood. Drawing from the literature on board human capital as a... Read More about Business Experts on Public Sector Boards: What Do They Contribute?.

Do Banks Issue Equity When They Are Poorly Capitalized? (2016)
Journal Article
Dinger, V., & Vallascas, F. (2016). Do Banks Issue Equity When They Are Poorly Capitalized?. Journal of Financial and Quantitative Analysis, 51(5), 1575-1609. https://doi.org/10.1017/s0022109016000545

Debt overhang and moral hazard predict that poorly capitalized banks have a lower likelihood to issue equity, while the presence of regulatory and market pressures posits an opposite theoretical prediction. By using an international sample of bank se... Read More about Do Banks Issue Equity When They Are Poorly Capitalized?.

Are Market-Based Measures of Global Systemic Importance of Financial Institutions Useful to Regulators and Supervisors? (2015)
Journal Article
Zhang, Q., Vallascas, F., Keasey, K., & Cai, C. (2015). Are Market-Based Measures of Global Systemic Importance of Financial Institutions Useful to Regulators and Supervisors?. Journal of Money, Credit and Banking, 47(7), 1403-1442. https://doi.org/10.1111/jmcb.12249

We analyze whether four market-based measures of the global systemic importance of financial institutions offer early warning signals during three financial crises. The tests based on the 2007–2008 crisis show that only one measure (∆CoVaR) consisten... Read More about Are Market-Based Measures of Global Systemic Importance of Financial Institutions Useful to Regulators and Supervisors?.