Abstract

The objective of this paper is to develop an empirical methodology to assess the relationship between the market value and the asset-liability structure of banks. A simple bank valuation model is suggested and empirically tested on a sample of French banks. The paper attempts to evaluate the effect of corporate taxation, the rent on deposits subject to interest rate ceilings, and the determinants of the 1974 drop in banks' market values. Copyright 1992 by Ohio State University Press.

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