Title
Do universal banks create value? Universal bank affiliation and company performance in Belgium, 1905-1909Do universal banks create value? Universal bank affiliation and company performance in Belgium, 1905-1909
Author
Faculty/Department
Faculty of Applied Economics
Research group
Accountancy and Finance
Publication type
report
Publication
Antwerp :University of Antwerp, Faculty of Applied Economics, [*]
Source (series)
Research paper / University of Antwerp, Faculty of Applied Economics , 2007:001
Volume/pages
42 p.
1
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
We investigate the impact of universal banks on the performance and the risk of affiliated companies in an unregulated environment with booming financial markets. For a unique sample of 129 Belgian companies listed in the period 1905-1909, we find that universal bank affiliation had a positive impact on the market-to-book ratio and return-on-assets. The effect on performance was positively related to the degree of bank involvement. Universal banks significantly reduced the volatility of return-on-assets. Stock return performance, measured by the Sharpe ratio, was also significantly better for affiliated corporations.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/66a3fa/07d3fac1.pdf
Handle