Thesis (Ph. D.)--University of Wisconsin--Madison, 1967. / Typescript. Vita. eContent provider-neutral record in process. Description based on print version record. Includes bibliographical references (leaves 217-224).

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Financial innovation is the subject of this thesis. The purpose of this thesis is to build up the first comprehensive theoretical framework able to analyze the causes, nature and process of financial innovation, in other words the first holistic and integrated approach to the phenomenon of financial innovation. Initially, we review a significant part of the available literature on innovation. Then we discuss the financial innovation-related literature, and incorporate some features from the general innovation literature. We introduce an analytical framework and model that accounts for the process of financial innovation. The novelty of the model is that it takes into account the integral process of financial innovation and for the first time combines elements from both standard and financial-innovation theory. Initially we present a set of factors that cause financial innovative activity. Furthermore, we highlight the fact that very often, more than one cause contributes to the initiation of innovative activity. In contrast with the existing literature, Silber (1975), Kane (1981), Miler (1986) and Tufano (1989), we elaborate further on the phenomenon of financial innovation by taking into account the factors that shape the innovative firm, mostly internal to the financial institution and very often related with the innovation-originated concepts. Then, we classify financial innovation according to five criteria, two of them commonly found in the innovation literature, one novel and the other two derived from the BIS (1986) classification. Finally, we present seven criteria that a financial innovation fulfils in order to be successful and "survive". A further contribution of our model is its dynamic approach. We highlight this dynamic process, by citing examples of financial innovations that were created in order to address the shortcomings of existing innovations. In order to provide the supporting evidence for the above model, we discuss in great detail four clusters of financial innovation: special bank liabilties, derivative products, securitization and plastic cards. During our research we encountered many financial innovations that took place in different places and times and under different circumstances. Our model provided us a unique analytical framework able to analyze each and every financial innovation in relation to its causes of emergence, factors that shaped the innovative output, classify in a detailed way this output and understand the reasons that enabled the survival of this innovation. Our analytical framework is not a single dimensional linear model but a dynamic, multi-level framework subject to evolution, able to provide a holistic, integrated and ageless approach.

Banks offer a wide range and variety of services to their commercial customers. Periodically, they analyse the services being utilized by a customer and subsequently enter into negotiations with that customer on the compensation to be provided for services rendered. As a preliminary to the major objective of this study, an argument is presented on the analysis approach that should be utilized by banks to determine compensation requirements and to negotiate these with the customer. The major, study objective is to determine, assess and compare the commercial account analysis procedures of selected United States and Canadian banks. While banks provide a wide range and variety of services to their commercial customers, this study argues that these services are linked by various quantitative and qualitative factors. As such, an all-inclusive analysis or valuation approach should be utilized to determine compensation requirements (a total customer relationship analysis), rather than one which separates the customer into a number of service categories or areas with compensation requirements being determined for each service area separately (a service area analysis). It is also argued that an integral part of the analysis process is profit computation over the total customer relationship. Based upon a literature search, it was determined that certain United States banks utilize an analysis procedure that computes profit over the total customer relationship. Their procedures (profitability analysis) are outlined and the strengths and weaknesses of the procedures are discussed. As only minimal published information was located on the analysis procedures of Canadian banks, research took the form of personal interviews with senior officers of six banks. It was determined that the Canadian banks utilize separate service area analyses and that in no instance is customer profitability computed, either by service area or over the total customer relationship. Rather, the analysis procedures focus attention on the revenues received vis-à-vis the revenues that should have been collected. While a service area approach is utilized, subjective valuations of total customer relationship profitability do occur, under certain circumstances, which may decrease the compensation requirements for that service area by virtue of the value of the total customer, relationship. Canadian bank analysis procedures are extensively outlined as, to the best of the writer's knowledge, this is the first study and documentation of them outside of the Canadian banking system. The procedures are compared to those of the United States banks and the possible reasons for the differences are discussed. Strengths and weaknesses of Canadian procedures are outlined in. relation to those of the United States banks. The study concludes that the Canadian banks could benefit from adoption of a total customer relationship approach to the analysis of their commercial customers. / Business, Sauder School of / Graduate

Thesis (Ph.D.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 1981. / MICROFICHE COPY AVAILABLE IN ARCHIVES AND ROTCH. / Includes bibliographies. / by Edward W. Hill. / Ph.D.

Zhang Xixi. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2006. / Includes bibliographical references (leaves 90-91). / Abstracts in English and Chinese. / Chapter I. --- Introduction --- p.6 / Chapter II. --- Literature Review --- p.10 / Chapter III. --- Hypotheses and Design of the Tests --- p.22 / Chapter IV. --- Data and Findings --- p.34 / Chapter A. --- Data Source --- p.34 / Chapter B. --- Selection of Sample BHCs --- p.35 / Chapter C. --- BHC Size and Description Securitization --- p.38 / Chapter 1). --- Description of BHC Size --- p.38 / Chapter 2). --- Types of Securitization --- p.43 / Chapter V. --- Results --- p.46 / Chapter A. --- Differences Between Securitizing and Non-securitizing BHC Characteristics --- p.46 / Chapter 1). --- Univariate Test between Securitizing and Non-securitizing banks Characteristics --- p.47 / Chapter 2). --- Joint Test of Difference between Mean Values of the Characteristics --- p.61 / Chapter B. --- Correlations among Variables --- p.62 / Chapter 1). --- Correlation within Same Characteristics Class --- p.63 / Chapter 2). --- Correlation among Different Characteristics --- p.65 / Chapter C. --- To Explain Decision on Securitization --- p.67 / Chapter D. --- Linear Regression to Explain the Degree of Securitizing Among Securitizing Banks --- p.75 / Chapter V. --- Conclusion and Insights for Future Research --- p.82 / Chapter A. --- Conclusion --- p.82 / Chapter B. --- Future Research --- p.87 / Chapter VI. --- References --- p.90 / Chapter VII. --- Appendix --- p.92

In this dissertation, I explore the ability of financial institutions to impact firm behavior. The first essay examines whether relationships between venture capital owners (VCs) and investment banking underwriters affect a firm’s ability to issue equity. I find that past interactions between VC owners and underwriters in the form of previously underwritten initial public offerings (IPOs) significantly increase the likelihood that an IPO firm chooses a specific underwriter. In terms of how VCs and underwriters associate with each other, older VCs partner with more reputable underwriters. Despite paying higher fees, issuing firms benefit from stronger VC-Underwriter relationships through upward offer price revisions and higher valuations. VC-Underwriter relationships also predict underwriter choice in subsequent equity offerings. This essay provides empirical evidence that suggests VCs use their relationships with investment banks to enable their portfolio firms access to high quality underwriters and better underwriting services. The second essay investigates whether credit rating concerns affect capital investment decisions. Using ex-ante measures of proximity to a rating change, I find that firms that are near a credit rating downgrade spend significantly less on capital expenditures relative to those not near a rating change. The response of firms to credit rating upgrades is not symmetric: firms do not seem to adopt significantly different investment policies when near an upgrade. This effect of lowering investment when near a credit downgrade is stronger for firms that face financial constraints, experience greater adverse selection and are more active in debt markets. Related to reductions in investment, firms near rating changes also spend less on research and development expenses and pay lower dividends. My findings are consistent with firms conserving financial resources to prevent adverse credit rating changes that could increase their cost of capital. / text

The purpose of this study is to examine the wealth effect of the Risk-Based Capital (RBC) regulation on the U.S. commercial banking industry. The RBC plan was first proposed in January 1986, and its final form was announced on July 11, 1988. This plan resulted from dissatisfaction with the old capital regulation, which did not account for asset risk and off-balance sheet activities. The present study hypothesizes that the new regulation restricted bank optimal behavior and, therefore, adversely affected stock prices. The second and third hypotheses suggest that investors used company specific information, Net Tier 1 and Total risk-based capital ratios respectively, in valuing stocks of the affected bank holding companies. Hypotheses four and five suggest that abnormal returns are proportionally related to the levels of Net Tier 1 or Total RBC ratio. Both the traditional event study and the portfolio time-series regression, with RBC ratios (Net Tier 1 or Total) as the weight factors, are used in this study.

This thesis is proposed and the study is made from a firm conviction that for the United States the system of private enterprise is the one that best suits our national temperament and our great abilities.

The National Banking System operated during the 50 year period between 1863 and 1913. It was believed at the time of its conception that individuals seeking a national bank charter would do so for the privilege of issuing national bank notes. Paradoxically, for the majority of the National Banking System's existence note issue was of · relatively minor importance. The one exception where note issue was an important aspect of national bank behavior was the period between 1867 and 1873. The purpose of this dissertation is to examine this period when national bank note issue was an important aspect of national bank behavior and determine why note issue was so important. In order to determine this, a straightforward profit maximizing model is developed and various predictions are made concerning national bank behavior. These predictions are then tested and evaluated using actual national bank balance sheet data to determine if actual national bank behavior conforms to the predictions of the model. / Ph. D.