http://www.bis.org/cbhub/list/author/author_2758/index.rss Research hub papers by author Bill B Francis en http://www.bof.fi/NR/rdonlyres/F605FD77-374A-4E76-8B47-24398B54BE06/0/1004netti.pdf Bank of Finland Discussion Papers by Sungho Choi – Bill B Francis – Iftekhar Hasan Cross-border bank M&As and risk: evidence from the bond market 2010-02-19T12:41:00Z The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the increase in risk-taking incentives for bank managers and stockholders following these transactions. This paper empirically investigates whether cross-border bank M&As increase or decrease the risk of acquiring banks as captured by changes in acquirers’ yield spreads. The paper also investigates how differences in the institutional environments between bidder and target countries affect changes in yield spreads following M&A announcements. The study finds that bondholders, in general, perceive cross-border bank M&As as risk-increasing activities, unlike domestic bank mergers. Specifically, on average, yield spreads increase by 4.13 basis points following the announcement of cross-border M&As. This study also finds that these yield spreads are significantly affected by the differences in investor-protection and deposit-insurance environments between the transacting countries. However, the study does not find that the regulatory and supervisory environment in the home countries of the transacting parties significantly affects the changes in yield spreads. The overall evidence suggests that regulators should judge the relative environment in both the home and the host countries in evaluating the associated risks of an active multinational financial institution and in setting the sufficiency of the banks’ reserve positions. Cross-border bank M&As and risk: evidence from the bond market 2010-02-19T12:41:00Z Abstract http://www.bof.fi/en/julkaisut/tutkimukset/keskustelualoitteet/2010/dp2010_04.htm Full text http://www.bof.fi/NR/rdonlyres/F605FD77-374A-4E76-8B47-24398B54BE06/0/1004netti.pdf Iftekhar Hasan Bill B Francis Sungho Choi Sungho Choi – Bill B Francis – Iftekhar Hasan 2010-01-25 Bank of Finland Discussion Papers http://www.bof.fi/NR/rdonlyres/B5C0175B-33F4-45D6-9511-D4932A5A472A/0/0907netti.pdf Bank of Finland Discussion Papers by Bill B Francis – Iftekhar Hasan – Xian Sun Political connections and the process of going public: evidence from China 2009-03-06T12:37:00Z We examine how political connections impact the process of going public. Specifically, we test how political connections impact the pricing of newly offered shares, the magnitude of underpricing, and the fixed cost of going public. Based on experiences of the new public firms in the Chinese security markets and using multiple measures of political connections, we find robust evidence that issuing firms with political connections reap significant preferential benefits from going public. To be specific, we find that firms – irrespective of ownership arrangements – with greater political connections have higher offering prices, less underpricing, and lower fixed costs during the going-public process. Political connections and the process of going public: evidence from China 2009-03-06T12:37:00Z Abstract http://www.bof.fi/en/julkaisut/tutkimukset/keskustelualoitteet/2009/dp2009_07.htm Full text http://www.bof.fi/NR/rdonlyres/B5C0175B-33F4-45D6-9511-D4932A5A472A/0/0907netti.pdf Xian Sun Iftekhar Hasan Bill B Francis Bill B Francis – Iftekhar Hasan – Xian Sun 2009-02-03 Bank of Finland Discussion Papers G24 G3 G32 G34 G38 H0 http://www.bof.fi/NR/rdonlyres/AE91054E-4BFE-46DA-B461-04AA9BD3BE9E/0/0814netti.pdf Bank of Finland Discussion Papers by Bill B Francis – Iftekhar Hasan – Delroy M Hunter Does hedging tell the full story? Reconciling differences in US aggregate and industry-level exchange rate risk premia 2008-05-27T12:37:00Z While the importance of currency movements to industry competitiveness is theoretically well established, there is little evidence that currency risk impacts US industries. Applying a conditional asset-pricing model to 36 US industries, we find that all industries have a significant currency premium that adds about 2.47 percentage points to the cost of equity and accounts for approximately 11.7% of the absolute value of total risk premia. Cross-industry variation in the currency premium is explained by foreign income, industry competitiveness, leverage, liquidity and other industry characteristics, while its time variation is explained by US aggregate foreign trade, monetary policy, growth opportunities and other macro variables. The results indicate that methodological weakness, not hedging, explains the insignificant industry currency risk premium found in previous work, thus resolving the conundrum that the currency risk premium is important at the aggregate stock market level, but not at industry level. Does hedging tell the full story? Reconciling differences in US aggregate and industry-level exchange rate risk premia 2008-05-27T12:37:00Z Abstract http://www.bof.fi/en/julkaisut/tutkimukset/keskustelualoitteet/2008/dp2008_14.htm Full text http://www.bof.fi/NR/rdonlyres/AE91054E-4BFE-46DA-B461-04AA9BD3BE9E/0/0814netti.pdf Iftekhar Hasan Bill B Francis Delroy M. Hunter Bill B Francis – Iftekhar Hasan – Delroy M Hunter 2008-05-27 Bank of Finland Discussion Papers C3 F3 F4 G3 http://www.bof.fi/NR/rdonlyres/2FC9B4B7-EF91-4C81-BF5C-A66ED009E6DB/0/0810netti.pdf Bank of Finland Discussion Papers by Bill B Francis – Iftekhar Hasan – James R Lothian – Xian Sun The signalling hypothesis revisited: Evidence from foreign IPOs 2008-05-07T18:43:00Z While the signalling hypothesis has played a prominent role as the economic rationale associated with the initial public offering (IPO) underpricing puzzle (Welch, 1989), the empirical evidence on it has been mixed at best (Jegadeesh, Weinstein and Welch, 1993; Michaely and Shaw, 1994). This paper revisits the issue from the vantage point of close to two decades of additional experience by examining a sample of foreign IPOs â€" firms from both financially integrated and segmented markets â€" in US markets. The evidence indicates that signalling does matter in determining IPO underpricing, especially for firms domiciled in countries with segmented markets, which as a result face higher information asymmetry and lack access to external capital markets. We find a significant positive and robust relationship between the degree of IPO underpricing and segmented-market firms’ seasoned equity offering activities. For firms from integrated markets, in contrast, the analyst-coverage-purchase hypothesis appears to matter more in explaining IPO underpricing and the aftermarket price appreciation explains these firms’ seasoned equity offering activities. The evidence, therefore, clearly supports the notion that some firms are willing to leave money on the table voluntarily to get a more favorable price at seasoned offerings when they are substantially wealth constrained, a prediction embedded in the signalling hypothesis. The signalling hypothesis revisited: Evidence from foreign IPOs 2008-05-07T18:43:00Z Abstract http://www.bof.fi/en/julkaisut/tutkimukset/keskustelualoitteet/2008/dp2008_10.htm Full text http://www.bof.fi/NR/rdonlyres/2FC9B4B7-EF91-4C81-BF5C-A66ED009E6DB/0/0810netti.pdf Xian Sun Iftekhar Hasan Bill B Francis James R Lothian Bill B Francis – Iftekhar Hasan – James R Lothian – Xian Sun 2008-05-06 Bank of Finland Discussion Papers G14 G15 G30 G32 http://www.bof.fi/eng/6_julkaisut/6.1_SPn_julkaisut/6.1.5_Keskustelualoitteita/0624netti.pdf Bank of Finland Discussion Papers by Bill B Francis – Iftekhar Hasan – Xian Sun Financial market integration and the value of global diversification: evidence from US acquirers in cross-border mergers and acquisitions 2006-12-14T18:09:59Z Financial market integration and the value of global diversification: evidence from US acquirers in cross-border mergers and acquisitions 2006-12-14T18:09:59Z Abstract http://www.bof.fi/eng/6_julkaisut/6.1_SPn_julkaisut/6.1.5_Keskustelualoitteita/dp06_24ee.stm Full text http://www.bof.fi/eng/6_julkaisut/6.1_SPn_julkaisut/6.1.5_Keskustelualoitteita/0624netti.pdf Xian Sun Iftekhar Hasan Bill B Francis Bill B Francis – Iftekhar Hasan – Xian Sun 2006-10-03 Bank of Finland Discussion Papers G15 G31 G34