The information content of the Banking Regulatory Agencies and the Depository Credit Intermediation Institutions

A. Elshahat, Ali Parhizgari and Liang Hong

Journal of Economics and Business, 2012, vol. 64, issue 1, 90-104

Abstract: We investigate the effectiveness of a well-known global regulatory agency, the Basel Committee, on a major sector of the US financial market. The Basel Committee's recommendations are implemented in the US following a plan set forth by the Federal Banking Agencies (FBAs). The information content of the FBAs’ announcements related to the Basel recommendations is assessed over the 1999–2010 for a sample of 2402 securities of different Depository Credit Intermediation Institutions (DCII). Employing time series of cross section data on these banks, our results indicate that Basel's recommendations have significant impact on the DCII stocks through the FBAs announcements.

Keywords: Banking Regulatory Agencies; Bank stocks; Cross-sectional; Time-series models (search for similar items in EconPapers)
JEL-codes: C21 C22 G14 G18 G21 G28 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:64:y:2012:i:1:p:90-104

DOI: 10.1016/j.jeconbus.2011.06.003

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