Title page for etd-0524115-132332


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URN etd-0524115-132332
Author Yu-ling Hsu
Author's Email Address No Public.
Statistics This thesis had been viewed 5351 times. Download 141 times.
Department Finance
Year 2014
Semester 2
Degree Master
Type of Document
Language English
Title The Effects of Peer Effects, Self-Characteristics, and Economic Uncertainty on Leverage Decision of a Financial Institution in United States
Date of Defense 2015-06-18
Page Count 82
Keyword
  • financial institution
  • economic policy uncertainty
  • firm-specific characteristics
  • Peer effects
  • leverage decision
  • Abstract This paper tries to figure out the determinants for leverage decision of a financial institution and develop an empirical model to combine peer effect, firm-specific characteristics and economic uncertainties together in analysis. Two important contributions of this paper is to building a bridge for traditional banking and peer influence literatures and extend the use of peer effect model of Manski (1993) in financial field. The results present that the leverage decision of a financial institution is affected by firm-specific characteristics channel, peer effects channel and economic uncertainty channel. And among all channels, the firm-specific characteristics channel is most influential one. The results also show that peer influence on leverage is from both peer firm characteristics and peer firm action. This paper concludes essence of financial institutions to focus on risk management let them consider on both the changes in peer firm’s characteristics and the changes in peer firm’s leverage ratio. Besides, changing the lending behavior and risk-taking capacity of a financial institution may be the way of economic uncertainty channel to influence leverage.
    Advisory Committee
  • Pei-fen Chen - chair
  • Jhih-Hong Zeng - co-chair
  • Chien-Chiang Lee - advisor
  • Files
  • etd-0524115-132332.pdf
  • Indicate in-campus at 2 year and off-campus access at 3 year.
    Date of Submission 2015-06-24

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