Browsing by Author "Stover, Roger"

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Open Access
Deposit Insurance and the Stock Market: Evidence from Denmark
(Te Herenga Waka—Victoria University of Wellington, 2004) Boyle, Glenn; Bartholdy, Jan; Stover, Roger
Previous studies of the relationship between deposit insurance and bank market values have usually been limited to consideration of minor changes in bank regulations but the 1987 initiation of deposit insurance in Denmark permits examination of a potentially major policy shift. We find that the market values of large Danish banks exhibited a modest positive reaction to the announcement of insurance but that small risky banks responded negatively. These results partially contrast with those previously found for the United States an outcome that seems likely to reflect the interaction of deposit insurance with the particular characteristics of the pre-existing Danish regulatory system.
Open Access
Staying Close to Home: Foreign Bank Participation in Syndicated Loans
(Te Herenga Waka—Victoria University of Wellington, 2008) Stover, Roger; Boyle, Glenn
We examine the propensity of Australian banks to participate in syndicated loans to corporate borrowers from 12 countries in the Asia-Pacific region. We find that these banks participate more often in greater numbers and in greater quantity for loans made to Australian and New Zealand borrowers. However much of this apparent bias can be attributed to differences in familiarity characteristics - legal systems culture banking presence and distance from Australia. As these characteristics are likely to proxy for information availability our results provide further support for the view that home bias phenomena are primarily due to information problems.