This study examines the trading activity of a large cross section of American bank holding companies upon various sub-events associated with the introduction of Basel III. An event study methodology was applied to various sub-composite portfolios, as determined by regulatory capitalization and leverage ratios. The results suggest that statically significant abnormal negative returns occurred on the announcement to negotiate due to heightened regulatory uncertainty, especially amongst the least capitalized and highest leveraged banks. However, this effect is complemented by statically significant positive returns upon the release of the initial guidelines. Reactions to subsequent events report to be less significant.
| Identifer | oai:union.ndltd.org:CLAREMONT/oai:scholarship.claremont.edu:cmc_theses-2396 |
| Date | 01 January 2016 |
| Creators | Delaney, Brian R |
| Publisher | Scholarship @ Claremont |
| Source Sets | Claremont Colleges |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | CMC Senior Theses |
| Rights | © 2016 Brian R. Delaney, default |
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