European bank equity risk: 1995-2006

We examine changes in bank equity risk following the formation of the Economic Monetary Union (EMU) in 1999. With the exception of Germany, we observe a decline in bank risk across euro-zone countries. Total risk decreased for 70% of the euro-zone banks in our sample with a statistically significant...

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Main Authors: Haq, Mamiza, Heaney, R.
Format: Journal Article
Published: 2009
Online Access:http://hdl.handle.net/20.500.11937/85305
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author Haq, Mamiza
Heaney, R.
author_facet Haq, Mamiza
Heaney, R.
author_sort Haq, Mamiza
building Curtin Institutional Repository
collection Online Access
description We examine changes in bank equity risk following the formation of the Economic Monetary Union (EMU) in 1999. With the exception of Germany, we observe a decline in bank risk across euro-zone countries. Total risk decreased for 70% of the euro-zone banks in our sample with a statistically significant decrease in total risk observed for 51% of the sample. Similar results are found for idiosyncratic risk and systematic risk. These results are robust to financial crisis effects and test specification. Moreover, we find some evidence of a decrease in bank equity risk for a sample of neighbouring non-euro-zone European countries, consistent with the existence of some spill over effects. © 2008 Elsevier B.V. All rights reserved.
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spelling curtin-20.500.11937-853052021-09-13T04:24:04Z European bank equity risk: 1995-2006 Haq, Mamiza Heaney, R. We examine changes in bank equity risk following the formation of the Economic Monetary Union (EMU) in 1999. With the exception of Germany, we observe a decline in bank risk across euro-zone countries. Total risk decreased for 70% of the euro-zone banks in our sample with a statistically significant decrease in total risk observed for 51% of the sample. Similar results are found for idiosyncratic risk and systematic risk. These results are robust to financial crisis effects and test specification. Moreover, we find some evidence of a decrease in bank equity risk for a sample of neighbouring non-euro-zone European countries, consistent with the existence of some spill over effects. © 2008 Elsevier B.V. All rights reserved. 2009 Journal Article http://hdl.handle.net/20.500.11937/85305 10.1016/j.intfin.2008.01.001 restricted
spellingShingle Haq, Mamiza
Heaney, R.
European bank equity risk: 1995-2006
title European bank equity risk: 1995-2006
title_full European bank equity risk: 1995-2006
title_fullStr European bank equity risk: 1995-2006
title_full_unstemmed European bank equity risk: 1995-2006
title_short European bank equity risk: 1995-2006
title_sort european bank equity risk: 1995-2006
url http://hdl.handle.net/20.500.11937/85305