Download This PaperBank Size, Market Concentration, and Bank Earnings Volatility in the US
30 Pages Posted: 17 Jan 2011 Last revised: 20 Jan 2011
There are 2 versions of this paper
Bank Size, Market Concentration, and Bank Earnings Volatility in the US
Bank Size, Market Concentration, and Bank Earnings Volatility in the US
Date Written: January 16, 2011
Abstract
We examine whether bank earnings volatility depends on bank size and the degree of concentration in the banking sector. Using quarterly data for non-investment banks in the United States for the period 2004Q1-2009Q4 and controlling for the quality of management, leverage, and diversification, we find that bank size reduces return volatility. The negative impact of bank size on bank earnings volatility decreases (in absolute terms) with market concentration. We also find that larger banks located in concentrated markets have experienced higher volatility during the recent financial crisis.
Keywords: Bank Earnings Volatility, Bank Size, Market Concentration, Financial Crises
JEL Classification: G21, G32, L25
Suggested Citation: Suggested Citation
Jakob De Haan
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By Jack D. Glen, Ajit Singh, ...
-
The Persistence of Bank Profit
By John Goddard, Hong Liu, ...