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An Empirical Investigation into the Failure of First RepublicBank: Is There a Contagion Effect?
Author(s) -
Dickinson Amy,
Peterson David R.,
Christiansen William A.
Publication year - 1991
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1991.tb00383.x
Subject(s) - contagion effect , economics , monetary economics , financial contagion , stock price , emotional contagion , stock (firearms) , financial economics , psychology , financial crisis , macroeconomics , series (stratigraphy) , social psychology , engineering , paleontology , biology , mechanical engineering
This study examines the presence of contagion effects associated with the failure of First RepublicBank. Banks are segregated on the basis of whether their stock price reactions are likely due to industry‐based information effects or contagion effects. Also considered are announcements during the same period of time associated with Third World loans. Results fail to substantiate the presence of contagion effects.