The role of equity in banks’ financial strategy. The case of European and North American banks
Type de matériel :
TexteLangue : français Détails de publication : 2023.
Sujet(s) : Ressources en ligne : Abrégé : The financial crisis of 2008 confirms the importance of banks having sufficient, quality capital to cope with economic and operational contingencies, and thus control the risks of insolvency and default. Moreover, recent developments demonstrate the importance of the financial value of flexibility, based on the real option approach proposed by S.-C. Myers (1977). In addition, our results showed that a higher level of shareholder equity than the minimum required is beneficial, contributing to improving the market value of the bank.
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The financial crisis of 2008 confirms the importance of banks having sufficient, quality capital to cope with economic and operational contingencies, and thus control the risks of insolvency and default. Moreover, recent developments demonstrate the importance of the financial value of flexibility, based on the real option approach proposed by S.-C. Myers (1977). In addition, our results showed that a higher level of shareholder equity than the minimum required is beneficial, contributing to improving the market value of the bank.
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