International bank capital standards and the costs of issuing capital securities by Japanese banks

Richard H. Pettway, Takashi Kaneko, Michael T. Young

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Banks in the industrialized world are moving toward a new international capital standard. The BIS or Basle standard establishes higher levels of capital and requires increased sales of securities by Japanese banks. This study measures the stockholders' costs of selling new capital issues by 27 Japanese banks, containing the largest banks in the world. There are significant differences in the stockholders' costs of these sales from those of U.S. banks. These sales effects by Japanese banks are opposite from those suggested by many finance theories. Several explanations for these differences are presented.

Original languageEnglish
Pages (from-to)559-580
Number of pages22
JournalJournal of Banking and Finance
Volume15
Issue number3
DOIs
Publication statusPublished - 1991

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Bank capital
Cost of capital
Capital standards
Japanese banks
Stockholders
Costs
Finance

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

International bank capital standards and the costs of issuing capital securities by Japanese banks. / Pettway, Richard H.; Kaneko, Takashi; Young, Michael T.

In: Journal of Banking and Finance, Vol. 15, No. 3, 1991, p. 559-580.

Research output: Contribution to journalArticle

Pettway, Richard H. ; Kaneko, Takashi ; Young, Michael T. / International bank capital standards and the costs of issuing capital securities by Japanese banks. In: Journal of Banking and Finance. 1991 ; Vol. 15, No. 3. pp. 559-580.
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