Debt Priority Structure, Market Discipline, and Bank Conduct
(2017)
Journal Article
Danisewicz, P., McGowan, D., Onali, E., & Schaeck, K. (2018). Debt Priority Structure, Market Discipline, and Bank Conduct. The Review of Financial Studies, 31(11), 4493-4555. https://doi.org/10.1093/rfs/hhx111
We examine how debt priority structure affects bank funding costs and soundness. Leveraging an unexplored natural experiment that changes the priority of claims on banks’ assets, we document asymmetric effects that are consistent with changes in moni... Read More about Debt Priority Structure, Market Discipline, and Bank Conduct.