Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5089966 | Journal of Banking & Finance | 2011 | 9 Pages |
Abstract
This paper examines the market-price to book-value ratio for 6604 bank stock observations from December 31, 2006 through June 30, 2009. We relate each bank's market-price to book-value ratio to several fundamental ratios and whether the bank took funds from the US Treasury under the Troubled Asset Relief Program (TARP). The results of this study show that banks who took TARP funds have lower market-price to book-value ratios. In addition, lower relative costs, higher non-interest income, and lower assets in non-accrual or foreclosed status are associated with higher market-price to book-value ratios while controlling for size and other bank attributes.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Dan J. Jordan, Douglas Rice, Jacques Sanchez, Donald H. Wort,