Record Details

Proportional Hazards Model of Bank Failure: Evidence from USA

Journal of Economic & Financial Studies

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Field Value
 
Title Proportional Hazards Model of Bank Failure: Evidence from USA
 
Creator Cox, Raymond A. K.
Kimmel, Randall K.
Wang, Grace W.Y.
 
Subject Finance; Banking
Bank Failure, Early Warning system, Proportional Hazard Model
G01; G18; G21; G33; G38
 
Description This study uses the Cox Proportional Hazards Model, examining the operating and financial characteristics of banks as well as market and economic conditions, to demonstrate what caused US bank failures. Consistent effects indicate US banks were more likely to survive when having higher capital, loan to assets, short term debt securities, and return on assets. The failure rate was greater when their loan loss allowances and past due accounts were high. The results of this research will help banks, central banks, governments, and regulators to forecast which banks are in financial trouble and understand why. They can then take effective action to shore up the financial strength of the affected banks as well as the financial system.
 
Publisher LAR Center Press
 
Contributor —
 
Date 2017-07-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journalofeconomics.org/index.php/site/article/view/290
10.18533/jefs.v5i3.290
 
Source Journal of Economic & Financial Studies; Vol 5, No 3 (2017): June; 35-45
2379-9471
2379-9463
 
Language eng
 
Relation http://journalofeconomics.org/index.php/site/article/view/290/322
http://journalofeconomics.org/index.php/site/article/downloadSuppFile/290/60
 
Rights Copyright (c) 2017 Raymond A. K. Cox, Randall K. Kimmel, Grace W.Y. Wang
http://creativecommons.org/licenses/by/4.0