Interest-rate risk and the pricing of depository financial intermediary common stock. Empirical evidence

Pierre Yourougou

Research output: Contribution to journalArticlepeer-review

63 Scopus citations

Abstract

Using the likelihood ratio test, this paper presents evidence that interest-rate risk is priced. These results are consistent with earlier findings presented by Sweeney and Warga, based on a different sample and methodology. The statistical results further reveal that failure to discern significant interest-rate premia is attributable to insufficient rate sensitivity rather than being an outcome of monetary policy (i.e., inadequate rate volatility).

Original languageEnglish (US)
Pages (from-to)803-820
Number of pages18
JournalJournal of Banking and Finance
Volume14
Issue number4
DOIs
StatePublished - Oct 1990
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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