Bank regulation risktaking incentives International comparison of bank
Bank regulation & risk-taking incentives: International comparison of bank risks. Выполнили: Григорьев Николай Мордвинов Глеб
Variables: Bank Risk Если Q>1, то компания может выпустить акции, с доходом вложив средства в капитал. С другой стороны, если Q < 1, то рынок недооценивает компанию. LAW&ORDER Annual index of law and order of the International Country Risk Guide (0 -6) LAWhigh Dummy variable for index Bank risk • REG • • Credit risk (NONPERF) (Non-performing loans/Total loans) Overall Bank risk (PRICEVOL) The standard deviation of daily bank stock returns for each year Index of freedom in the banking and finance activity Ranges from 1 to 5 REGhigh • Dummy variable defined from the index of freedom in the banking and finance activity of each country.
Variables: INSExp Dummy variable • 1, if the country has a deposit insurance scheme • 0, otherwise LEGALORIGIN 1 English common law 2 French commercial code 3 German commercial code 4 Scandinavian commercial code; and 5 Socialist/Communist laws SIZE Natural logarithm of book value of bank total assets at the end of each year TANG Ratio of book value of tangible assets to total bank assets UCOIN Ratio of investments in unconsolidated subsidiaries to total bank assets DEBT Ratio of total debt to total bank assets YEAR DUMMY VARIABLES
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