The choice of capital instruments
研究银行资本监管是否迫使银行发行成本更高的股权而非次级债务，发现银行偏好避免发行普通股，尤其当市净率低于1时，且大银行更看重债务替代股权的灵活性。
A system of bank supervision and regulation should protect taxpayers and the financial system without imposing unnecessary costs on banks. This article focuses on whether existing capital regulations, one of the primary tools of bank supervision and regulation, are imposing unnecessary costs on banks. In particular, the capital requirements may be requiring banks to issue equity when it would be less costly for them to issue subordinated debt. ; The authors obtain evidence on the costs generated by equity issues by examining the type of capital banks issued in response to the capital guidelines of the 1980s, which included a type of debt in capital. The findings suggest that banks prefer to avoid issuing common equity, especially when the ratio of the market price of their stock to its book value is less than one. The results suggest that the option to substitute debt for equity in meeting the capital standards is especially valuable for banks with low market values. The results also suggest that the ability to issue debt as a substitute for equity is more valuable to larger banks.