We develop a new identification strategy to evaluate the impact of the geographic expansion of a bank holding company (BHC) across US metropolitan statistical areas (MSAs) on BHC risk. For the ...average BHC, the instrumental variable results suggest that geographic expansion materially reduces risk. Geographic diversification does not affect loan quality. The results are consistent with arguments that geographic expansion lowers risk by reducing exposure to idiosyncratic local risks and inconsistent with arguments that expansion, on net, increases risk by reducing the ability of BHCs to monitor loans and manage risks.
This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United States on their market valuations. Using two new identification strategies ...based on the dynamic process of interstate bank deregulation, we find that exogenous increases in geographic diversity reduced BHC valuations. We also find that the geographic diversification of BHC assets increased insider lending and reduced loan quality. Taken together, these findings are consistent with theories predicting that geographic diversity intensifies agency problems.
Competition and bank stability Goetz, Martin R.
Journal of financial intermediation,
07/2018, Letnik:
35
Journal Article
Recenzirano
Odprti dostop
Does an increase in competition increase or decrease bank stability? I use a novel way to capture changes in banking competition by exploring how the exogenous state-specific process of banking ...deregulation gradually lowered entry barriers into urban banking markets. I find that the increase in market contestability significantly improves bank stability. This result is robust to the inclusion of additional fixed effects and other influences, such as mergers and acquisitions, or geographic expansion. Moreover, I find that greater competition reduces banks’ failure probability, share of non-performing loans and increases profitability. These findings suggest that competition increases stability, as it improves bank profitability and asset quality.
We analyze the effect of the geographic expansion of banks across U.S. states on the co-movement of economic activity between states. Exploiting the removal of interstate banking restrictions to ...construct time-varying instrumental variables at the state-pair level, we find that bilateral banking integration increases output co-movement between states. The effect of financial integration depends on the nature of the idiosyncratic shocks faced by states and is stronger for financially dependent industries. Finally, we show that integration increases the similarity of bank lending fluctuations between states and contributes to the transmission of deposit shocks across states.
•Integration of U.S. states' banking systems increases states' output synchronization.•Output co-movement of industries that depend more on external finance increases more.•Real/financial shocks in a state pair decrease/increase the co-movement of states' output.•Bank funding shocks in an area are transmitted via bank lending to other areas.
Working memory (WM) capacity reflects executive functions associated with performance on a wide range of cognitive tasks and education outcomes, including mathematics achievement, and is associated ...with dorsolateral prefrontal and parietal cortices. Here we asked if family income is associated with variation in the functional brain organization of WM capacity among adolescents, and whether that variation is associated with performance on a statewide test of academic achievement in mathematics. Participants were classified into higher‐income and lower‐income groups based on family income, and performed a WM task with a parametric manipulation of WM load (N‐back task) during functional magnetic resonance imaging (fMRI). Behaviorally, the higher‐income group had greater WM capacity and higher mathematics achievement scores. Neurally, the higher‐income group showed greater activation as a function of WM load in bilateral prefrontal, parietal, and other regions, although the lower‐income group exhibited greater activation at the lowest load. Both groups exhibited positive correlations between parietal activations and mathematics achievement scores, but only the higher‐income group exhibited a positive correlation between prefrontal activations and mathematics scores. Most of these findings were maintained when higher‐ and lower‐income groups were matched on WM task performance or nonverbal IQ. Findings indicate that the functional neural architecture of WM varies with family income and is associated with education measures of mathematics achievement.
Higher versus lower family income in adolescents was associated with higher scores on a statewide mathematics achievement test, greater working memory capacity, greater functional brain responses to increasing memory demands, and differential brain correlations with achievement. Findings indicate that the functional neural architecture of working memory varies with family income and is associated with achievement.
In MONARCH 3, continuous dosing of abemaciclib with an aromatase inhibitor (AI) conferred significant clinical benefit to postmenopausal women with HR+, HER2- advanced breast cancer. We report data ...for clinically prognostic subgroups: liver metastases, progesterone receptor status, tumor grade, bone-only disease, ECOG performance status, and treatment-free interval (TFI) from an additional 12-month follow-up (after final progression-free survival PFS readout). In the intent-to-treat population, after median follow-up of approximately 39 months, the updated PFS was 28.2 versus 14.8 months (hazard ratio HR, 0.525; 95% confidence interval, 0.415-0.665) in abemaciclib versus placebo arms, respectively. Time to chemotherapy (HR, 0.513), time to second disease progression (HR, 0.637), and duration of response (HR, 0.466) were also statistically significantly prolonged with the addition of abemaciclib to AI. Treatment benefit was observed across all subgroups, as evidenced by objective response rate change from the addition of abemaciclib to AI, with the largest effects observed in patients with liver metastases, progesterone receptor-negative tumors, high-grade tumors, or TFI < 36 months. Extended follow-up in the MONARCH 3 trial further confirmed that the addition of abemaciclib to AI conferred significant treatment benefit to all subgroups, including those with poorer prognosis.
Similarities between Alzheimer disease (AD) and Parkinson disease (PD) suggest a possible role for apolipoprotein E (APOE) in PD. Most previous studies seeking to establish such a link used ...case-control datasets and results have been inconsistent.
To investigate APOE's role in PD using family-based association analyses.
APOE functional polymorphisms were genotyped for 658 PD affected families, including 282 multiplex and 376 singleton families. The pedigree disequilibrium test (PDT) and the genotype-PDT were used to test the risk effect of APOE. The Monks-Kaplan test was used to evaluate the effect of APOE on age at onset of PD.
APOE was significantly associated with risk of developing PD. Stratified analysis revealed that APOE was most strongly associated with families with a positive PD family history (global p = 0.003). Like AD, the APOE-4 allele increases disease risk while the APOE-3 allele decreases risk. We detected a positive association of APOE-3 (p = 0.019) and a negative association of APOE-4 (p = 0.015) with age at onset in PD.
The APOE-4 allele increases risk and decreases age at onset of PD, an association that may not be dependent upon cognitive impairment.
A self-optimizing approach to intra-cavity spectral shaping of external cavity mode-locked semiconductor lasers using edge-emitting multi-section diodes is presented. An evolutionary algorithm ...generates spectrally resolved phase- and amplitude masks that lead to the utilization of a large part of the net gain spectrum for mode-locked operation. Using these masks as a spectral amplitude and phase filter, a bandwidth of the optical intensity spectrum of 3.7 THz is achieved and Fourier-limited pulses of 216 fs duration are generated after further external compression.
We analyze the influence of second and third order intracavity dispersion on a passively mode-locked diode laser by introducing a spatial light modulator (SLM) into the external cavity. The ...dispersion is optimized for chirped pulses with highest possible spectral bandwidth that can be externally compressed to the sub picosecond range. We demonstrate that the highest spectral bandwidth is achieved for a combination of second and third order dispersion. With subsequent external compression pulses with a duration of 437 fs are generated.
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