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.

DOI

10.1016/j.jeconbus.2013.08.002

Version

Postprint

Volume

71

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