Size and support ratings of US banks
North American journal of economics and finance, 2016, Vol. 37, pp. 236-247
POGHOSYAN, Tigran, WERGER, Charlotte, DE HAAN, Jakob, Size and support ratings of US banks, North American journal of economics and finance, 2016, Vol. 37, pp. 236-247 - http://hdl.handle.net/1814/61479
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We examine whether Fitch support ratings of US banks depend on bank size. Using quarterly data for the period 2004:Q4 to 2012:Q4 and controlling for several factors that make large and small banks different, we find that bank size is positively related to support ratings. However, the effect is non-linear in line with the 'too-big-to-rescue' hypothesis. After the failure of Lehman Brothers and the passing of Dodd-Frank the relation between size and potential support has become stronger. (C) 2016 Elsevier Inc. All rights reserved.
Cadmus permanent link: http://hdl.handle.net/1814/61479
Full-text via DOI: 10.1016/j.najef.2016.05.006
ISSN: 1062-9408; 1879-0860
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