How to order
IMF Publications

Working Papers in full text
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All


Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile



The Valuation Effects of Geographic Diversification: Evidence from U.S. Banks

Author/Editor: Goetz, Martin | Laeven, Luc | Levine, Ross
Authorized for Distribution: February 1, 2012
Electronic Access: Free Full Text (PDF file size is 1,099KB)
Use the free Adobe Acrobat Reader to view this PDF file.
 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United States on their market valuations. Using two novel identification strategies based on the dynamic process of interstate bank deregulation, we find that exogenous increases in geographic diversity reduce BHC valuations. These findings are consistent with the view that geographic diversity makes it more difficult for shareholders and creditors to monitor firm executives, allowing corporate insiders to extract larger private benefits from firms.
 
Order a print copy
Series: Working Paper No. 12/50
Subject(s): Bank regulations | Banking | Commercial banks | Corporate governance | United States
Author's keyword(s): Geographic Corporate diversification; Agency problems; Economies of scope; Corporate insiders; Corporate valuation
 
English  
    Published:   February 1, 2012        
            Format:   Paper
    Stock No:   WPIEA2012050   Pages:   34
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
Please address any questions about this title to publications@imf.org.