Market discipline and the use of stock market data to predict bank financial distress

被引：5

作者：

Distinguin I. ^{[1
]}

Rous P. ^{[1
]}

Tarazi A. ^{[1
]}

机构：

[1] Université de Limoges, LAPE, 87031 Limoges Cedex 1

来源：

Journal of Financial Services Research | 2006年 / 30卷 / 2期

关键词：

Bank; Bank risk; Market discipline; Market prices;

D O I：

10.1007/s10693-0016-6

中图分类号：

学科分类号：

摘要：

We assess the extent to which stock market information can be used to estimate leading indicators of bank financial distress. We specify a logit early warning model, designed for European banks, which tests if market based indicators add predictive value to models relying on accounting data. We also study the robustness of the link between market information and financial downgrading in the light of the safety net and asymmetric information hypotheses. Some of our results support the use of market-related indicators. Other results show that the accuracy of the predictive power depends on the extent to which bank liabilities are market traded. © Springer Science + Business Media, LLC 2006.

引用

页码：151 / 176

页数：25

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