All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Isabelle Distinguin and Amine Tarazi
 
''Are early market indicators of financial deterioration accurate for Too Big To Fail banks? Evidence from East Asia''
( 2010, Vol. 30 No.2 )
 
 
This paper investigates whether market information is reliable to predict financial deterioration of large Too Big To Fail banks in Asia. A stepwise logit model is first estimated to isolate the optimal set of accounting indicators to predict rating downgrades. The model is then extended to assess the added value of market indicators and to test for the possible presence of a Too Big To Fail effect. While some results show that market indicators bring in additional information in the prediction process, there is consistent evidence of a Too Big To Fail effect.
 
 
Keywords: Bank, Bank Failure, Bank Risk, East Asia
JEL: G2 - Financial Institutions and Services: General
 
Manuscript Received : Feb 12 2010 Manuscript Accepted : Jun 19 2010

  This abstract has been downloaded 327 times                The Full PDF of this paper has been downloaded 87706 times