Business Faculty Publications
Document Type
Article
Publication Date
2014
Publication Title
Journal of Economics and Business
Keywords
Accounting/Taxation
Disciplines
Finance and Financial Management
Abstract
We examine the market reaction and shift in risk from nine prominent government interventions in response to the crisis between February 2007 and July 2009 on four types of institutions: banks, savings and loan associations (S&Ls), insurance companies, and real estate investment trusts (REITs). Overall, with the exception of the Troubled Assets Repurchase Program (TARP), the interventions were wealth-decreasing and risk-increasing events for financial institutions. Leveraged firms and firms with higher trading volumes earn significantly lower abnormal returns. For both during- and post-crisis periods, larger firms experience increases in systematic risk; non-U.S. firms experience lower changes in systematic risk.
Recommended Citation
Pennathur, A., Smith, D., and Subrahmanyam, V.(2014). The Stock Market Impact of Government Interventions on Financial Services Industry Groups: Evidence from the 2007–2009 Crisis. Journal of Economics and Business, 71, pp. 22-44.
DOI
10.1016/j.jeconbus.2013.08.002
Version
Postprint
Publisher's Statement
NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Economics and Business. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economics and Business, 71, (2014); 10.1016/j.jeconbus.2013.08.002
Volume
71
