Federal Dposit InsuranceCorporation• Center for Financial Researchh
Sanjiv R. Das
Darrell Duffie
Nikunj Kapadia
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
FDIC Center for Financial Research
Working Paper
No. 2010-02
When Shareholders Are Creditors: Effects of the Simultaneous Holding
of Equity and Debt by Noncommercial-Banking Institutions
May 2010
Empirical Comparisons and Implied Recovery Rates
kkk
An Empirical
An Empirical Analysis
State-
Efraim Benmel Efraim Benmelech May, 2005
June 20
May , 2005 Asset S2005-14
September 2005
Sanjiv R. Das
Darrell Duffie
Nikunj Kapadia
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
FDIC Center for Financial Research
Working Paper
No. 2010-02
When Shareholders Are Creditors: Effects of the Simultaneous Holding
of Equity and Debt by Noncommercial-Banking Institutions
May 2010
Empirical Comparisons and Implied Recovery Rates
kkk
An Empirical
An Empirical Analysis
State-
Efraim Benmel Efraim Benmelech May, 2005
June 20
May , 2005 Asset S2005-14
September 2005
1
When Shareholders Are Creditors: Effects of the Simultaneous Holding of
Equity and Debt by Noncommercial-Banking Institutions*
Wei Jiang
Columbia University†
Kai Li
University of British Columbia‡
Pei Shao
University of Northern British Columbia§
* We thank an anonymous referee, Matt Spiegal (the editor), George Aragon, Hank Bessembinder, Alex Edmans,
Issam Hallak, Pedro Matos, Nadia Massoud, Paige Ouimet, Adriano Rampini, Claire Rosenfeld, Wei-Ling Song,
Laura Starks, Lihong Wang, Yihui Wang, and seminar and conference participants at Bocconi University, the
Central University of Finance and Economics, K. U. Leuven, Peking University, Queens University, the University
of Amsterdam, the University of British Columbia, the FDIC Center for Financial Research, the UNC/Duke
Corporate Finance Conference, the University of Oregon Conference on Institutional Investors and the Asset
Management Industry, the China International Conference in Finance, the European Finance Association Meeting,
and the Northern Finance Association Meeting for helpful comments. We thank Qianqian Du and Vyacheslav Fos
for excellent research assistance. This project received financial support from the Federal Deposit Insurance
Corporation. Li also acknowledges the financial support from the Social Sciences and Humanities Research Council
of Canada, the Sauder School SS&H Research Grant, and the Bureau of Asset Management Research Grant. All
remaining errors are our own.
† Columbia School of Business, Columbia University, 3022 Broadway, Uris Hall 803, New York, NY 10027,
212.854.9002, wj2006@columbia.edu.
‡ Sauder School of Business, University of Britis h Columbia, 2053 Main Mall, Vancouver, BC V6T 1Z2,
604.822.8353, kai.li@sauder.ubc.ca.
§ School of Business, University of Northern British Columbia, 3333 University Way, Prince George, BC V2N 4Z9,
250.960.5108, shao@unbc.ca.
When Shareholders Are Creditors: Effects of the Simultaneous Holding of
Equity and Debt by Noncommercial-Banking Institutions*
Wei Jiang
Columbia University†
Kai Li
University of British Columbia‡
Pei Shao
University of Northern British Columbia§
* We thank an anonymous referee, Matt Spiegal (the editor), George Aragon, Hank Bessembinder, Alex Edmans,
Issam Hallak, Pedro Matos, Nadia Massoud, Paige Ouimet, Adriano Rampini, Claire Rosenfeld, Wei-Ling Song,
Laura Starks, Lihong Wang, Yihui Wang, and seminar and conference participants at Bocconi University, the
Central University of Finance and Economics, K. U. Leuven, Peking University, Queens University, the University
of Amsterdam, the University of British Columbia, the FDIC Center for Financial Research, the UNC/Duke
Corporate Finance Conference, the University of Oregon Conference on Institutional Investors and the Asset
Management Industry, the China International Conference in Finance, the European Finance Association Meeting,
and the Northern Finance Association Meeting for helpful comments. We thank Qianqian Du and Vyacheslav Fos
for excellent research assistance. This project received financial support from the Federal Deposit Insurance
Corporation. Li also acknowledges the financial support from the Social Sciences and Humanities Research Council
of Canada, the Sauder School SS&H Research Grant, and the Bureau of Asset Management Research Grant. All
remaining errors are our own.
† Columbia School of Business, Columbia University, 3022 Broadway, Uris Hall 803, New York, NY 10027,
212.854.9002, wj2006@columbia.edu.
‡ Sauder School of Business, University of Britis h Columbia, 2053 Main Mall, Vancouver, BC V6T 1Z2,
604.822.8353, kai.li@sauder.ubc.ca.
§ School of Business, University of Northern British Columbia, 3333 University Way, Prince George, BC V2N 4Z9,
250.960.5108, shao@unbc.ca.