tailieunhanh - Working Paper Series no 1096 / September 2009: The determinants of Bank capital structure

First, standard cross-sectional determinants of firms’ capital structures also apply to large, publicly traded banks in the US and Europe, except for banks close to the minimum capital requirement. The sign and significance of the effect of most variables on bank capital structure are identical to the estimates found for non-financial firms. This is true for both book and market leverage, Tier 1 capital, when controlling for risk and macro factors, for US and EU banks examined separately, as well as when examining a series of cross-sectional regressions over time. . | EUROPEAN CENTRAL BANK EUROSYSTEM WORKING PAPER SERIES NO 1096 I SEPTEMBER 2009 THE DETERMINANTS OF BANK CAPITAL STRUCTURE by Reint Gropp and Florian Heider EUROPEAN CENTRAL BANK EUROSYSTEM 200 111-111111 In 2009 all ECB publications feature a motif taken from the 200 banknote. WORKING PAPER SERIES NO 1096 I SEPTEMBER 2009 THE DETERMINANTS OF BANK CAPITAL STRUCTURE 1 by Reint Gropp 2 and Florian Heider 3 This paper can be downloaded without charge from http or from the Social Science Research Network electronic library at http abstract_id 1478335. Ì We are grateful to Markus Baltzer for excellent research assistance. Earlier drafts of the paper were circulated under the title What can corporate finance say about banks capital structures . We would like to thank Franklin Allen Allan Berger Bruno Biais Arnoud Boot Charles Calomiris Mark Carey Murray Frank Itay Goldstein Vasso Ioannidou Luc Laeven Mike Lemmon Vojislav Maksimovic Steven Ongena the editor Elias Papaioannou Bruno Parigi Joshua Rauh Joao Santos Christian Schlag an anonymous referee participants and discussants at the University of Frankfurt Maastricht University EMST Berlin American University the IMF the ECB the ESSFM in Gerzensee the Conference Information in bank asset prices theory and empirics in Ghent the 2007 Tor Vergata Conference on Banking and Finance the Federal Reserve Board of Governors the Federal Reserve Bank of San Francisco the European Winter Finance Conference the Financial Intermediation Research Society conference and the Banca d Italia for helpful comments and discussions. This paper reflects the authors personal opinions and does not necessarily reflect the views of the European Central Bank or the Eurosystem. 2 European Business School Wiesbaden and Centre for European Economic Research ZEW Mannheim Germany e-mail 3 Corresponding author European Central Bank Kaiserstrasse 29 D-60311 Frankfurt am Main Germany e-mail .