Research on holding bank¡¦s risk-taking behavior have focused on the effect on the performace. Using data in Taiwan, this paper investigates the relationship between managerial ownership, franchise value and domestic bank¡¦s risk-taking behavior. ¡@This paper includes independent variances of total return risk, systematic risk and idoiosyncratic risk derived from the capital market, and includes dependent variances of managerial ownership, franchise value, financial leveal, operating leveal and total assets. ¡@This research indicates that: ¡@1.manager ownership is negatively related to both total return risk, systematic risk and idoiosyncratic risk. ¡@2.franchise value is negatively related to both total return risk and idoiosyncratic risk, and unlated to systematic risk. ¡@3.financial leveal is unrelated to both total return risk ,systematic risk and idoiosyncratic risk. ¡@4.operating leveal is positively related to both total return risk and idoiosyncratic risk, and unlated to systematic risk. ¡@5.total assets is unrelated to both total return risk, systematic risk and idoiosyncratic risk.

The National Basketball Association (NBA) has recently come under scrutiny from media and fans due to the perception that some franchises are losing games on purpose in an attempt to win a higher draft pick. While researchers have concluded tanking does exist in the NBA, this is the first paper to analyze the strategy’s success in terms of generating increases in future winning percentage or future franchise value. This paper, through panel data regressions controlling for fixed effects for 21 seasons, has found that tanking does have a large impact on future winning percentage. A team that tanks typically sees a significant increase in wins of approximately 9.87 games between the 2nd and 4th year after the team tanked. These results have large implications for the league as the NBA recently began draft reform discussions to reduce the incentive to tank. This paper validates the leagues’ belief that draft reform must occur as tanking can give an unfair advantage in future years.

The thesis examines the dynamic impact of capital structure on firm performance in Nigeria. The aims of this thesis are; first, to investigate the impact of capital structure of firms on their performance in a dynamic framework. This is unlike previous studies in the capital structure literature that have used static analysis. Second, to examine the dynamic feedback from performance to capital structure using the two-step system generalized method of moment estimator. Third, to explore the determinants or variables that influence capital structure choice of firms in Nigeria and the rate of adjustment to achieve optimal debt position. Fourth, to assess the possibility of non-monotonicity effect of capital structure on firm performance and non-monotonicity effect of performance on capital structure. The second chapter discusses the theoretical framework and review the empirical literatures on capital structure and firm performance. Also, the chapter review empirical literature on firm performance and capital structure as well as on determinants of capital structure. The study find much evidence in support of the theoretical prediction of the agency cost theory of capital structure. The stuudy observed that there are limited empirical studies on the franchise value and efficiency-risk hypotheses of reverse causality from performance to capital structure. The empirical literatures on determinants of capital structure suggests that both firm specific and country factors are important variables that drive capital structure choice of firms. The thrid chapter examines the methodology of the study. The population, sampling and sampling size, estimation methods were discussed in this chapter. The fourth chapter analysis and described the data employed in the study. Specifically, the results of the dynamic relationship between capital structure and firm performance were presented in this chapter. The results indicate that capital structure has non-monotonic effect on firm performance thereby supports the agency cost theory of capital structure. The fifth chapter provides results on the reverse causality between performance and capital structure. The findings indicate that there is reverse causality between performance and capital structure. This is evidence in the statistically significant negative finding between performance and capital structure. This finding support the franchise value hypothesis. The findings of this study also reveal that non-monotonic relationship exist between performance and capital structure. The sixth chapter provides results on the determinants of capital structure of Nigerian firms. The findings indicate that both firm specific variables (return on equity, risk, profitablity, age, size, tangibility, growth opportunities, dividend, ownership) and country variables (inflation, interest rates, credit to private sector as percentage of gross domestic product, institutional quality) jointly influence capital structure choice of firms in Nigeria. The findings equally indicate that firms in Nigeria adjust to their optimal debt target relatively faster with lower cost of adjustment because of better access to private debt that public debt. Conclusions from the empirical chapters indicate that firm specific and country factors are major determinants of capital structure of firms in Nigeria and that capital structure choice of firms influence their performance. Equally, there is evidence that indicate that there is reverse causality from performance to capital structure of firms. The study therefore contend that the agency cost theory of capital structure and franchise value hypothesis are portable in the Nigerian context. Full portability of these theories in emerging market like Nigeria may require modifications to accommodate specific peculiarities of operating and business environment of Nigeria.

The financial crisis starting in mid-2007 is still affecting us, and with increased regulation banks and institutions are supposed to get more solvent and the industry to become more stable. The Basel Committee is working towards more unified regulation across countries, but the question is how the increased regulation is affecting banks financials. Do profitable banks with a solid capital base have a higher ratio of capital buffer? Looking at banks in 16 OECD countries during the period 1993-2009, with country-level panel-data displayed in two simultaneous equation estimations illustrating how profit and capital buffer has changed during these years, and the relation between them. To get an understanding of how the crisis affected these variables the regressions are also done for a pre-crisis period of 1993-2006. Internal funding variables and other economic control variables are explanatory variables and results show the internal funding variables have a large effect on profit and for capital buffer profit have the largest impact. Results imply that profitable banks with a solid capital base do have a higher ratio of capital buffer. The results coincide with the franchise value theory which is applied in the paper.

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