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Theses and Dissertations

Permanent URI for this collectionhttps://hdl.handle.net/10217/100400

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Browsing Theses and Dissertations by Subject "banking"

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    Essays on regional economic development: finance, growth, and income distribution
    (Colorado State University. Libraries, 2019) Petach, Luke, author; Pena, Anita Alves, advisor; Tavani, Daniele, advisor; Weiler, Stephan, committee member; Opp, Susan, committee member
    This dissertation explores the relationship between financial markets and economic activity across regions within the United States. In particular, it examines how regional variation in financial markets may affect variables that play an important role in regional economic growth and income distribution. Despite the way the Great Recession of 2007-2009 made manifest the importance of financial markets in the determination of real economic outcomes, there is still much that is not understood about the relationship between financial markets and the rest of the economy. Financial markets may affect household decision making either indirectly via their influence over institutional arrangements and social norms, or directly via their influence over who can obtain access to the credit needed to start a business, purchase a home, or invest in human capital. These changes will alter the distribution of income—both directly via the re-distribution of funds through credit markets, and indirectly via the outcomes that access to credit (or lack there-of) engender.
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    ItemOpen Access
    Feeling the squeeze: looking for lemons in the market for used banks
    (Colorado State University. Libraries, 2024) Totten, Gregory, author; Weiler, Stephan, advisor; Thilmany, Dawn, committee member; Kling, Robert, committee member
    This study examines adverse selection and geographic information asymmetry costs stemming from branch network expansion on bank performance. Using a comprehensive dataset covering the period from 1994 to 2022 from the FDIC, this paper investigates how geographic expansion and resulting merger and acquisition (M&A) activity impact bank performance, as measured by Return on Assets (ROA), Return on Equity (ROE), and Non-Performing Loans. The findings reveal that while increasing bank size generally (as measured by total assets) yields benefits, likely due to operational efficiencies, these are accompanied by offsetting costs due to both local information losses resulting from increased geographic branch network size and adverse selection ("lemons") effects stemming from the M&A process. These costs are particularly acute during economic downturns, as evidenced by the interaction effects observed during the Great Recession. The results suggest that information asymmetries, resulting from geographic distance and a lemons effect, are significant in determining bank performance outcomes. This study contributes to the existing literature by reconciling previously mixed findings regarding the net benefits of bank branch network expansion, highlighting the importance of considering both the benefits and costs associated with these strategies.