Effects of the 1970 Bank Holding Company Act: Evidence from Capital Markets
利用资本市场数据，研究1970年银行控股公司法修正案对银行控股公司盈利和风险的影响，发现非银行业务扩张条款并未显著改变其表现。
ABSTRACT This study measures the effects of the 1970 amendment to the Bank Holding Company (BHC) Act on the profitability and risk of BHCs using capital market data. Differences in abnormal returns and risk among three portfolios of bank shares which differ in their regulatory status are examined in various periods preceding and following the enactment. No significant differences in performance and no change in the relative risk of any pair of portfolios were observed. Thus, the null hypothesis that the nonbank expansion provisions of the 1970 amendment had no effect on BHCs' risk and profitability cannot be rejected.