Risk and the Corporate Structure of Banks

被引:54
作者
Dell'Ariccia, Giovanni [1 ]
Marquez, Robert [2 ]
机构
[1] Int Monetary Fund, Washington, DC 20431 USA
[2] Boston Univ, Boston, MA 02215 USA
关键词
INTERNAL CAPITAL-MARKETS; ABROAD;
D O I
10.1111/j.1540-6261.2010.01561.x
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We identify different sources of risk as important determinants of banks' corporate structures when expanding into new markets. Subsidiary-based corporate structures benefit from greater protection against economic risk because of affiliate-level limited liability, but are more exposed to the risk of capital expropriation than are branches. Thus, branch-based structures are preferred to subsidiary-based structures when expropriation risk is high relative to economic risk, and vice versa. Greater cross-country risk correlation and more accurate pricing of risk by investors reduce the differences between the two structures. Furthermore, a bank's corporate structure affects its risk taking and affiliate size.
引用
收藏
页码:1075 / 1096
页数:22
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