Knowledge that Transforms

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.

Partial table of contents: THE ANALYTICAL FRAMEWORK. The American Real Estate Industry: An Overview. Regional and Urban Economics. Spatial Economics: Rent, Situs, and Succession Theory. THE LEGAL ENVIRONMENT. Real Estate Interests and Forms of Ownership. Transferring Real Estate Interests. VALUATION AND THE APPRAISAL PROCESS. The Sales Comparison Approach and the Cost Approach. MARKETING, BROKERAGE, AND MANAGEMENT. Marketing. Brokerage. Asset Management: The Property Management Perspective. REAL ESTATE FINANCE. The Financial System and Real Estate Finance. Financing Mechanics: The Borrower's Perspective. Mortgage Underwriting: The Lender's Perspective. The Secondary Mortgage Markets. REAL ESTATE TAXATION. Income and Property Taxation. INVESTMENT ANALYSIS. Principles of Investment. The Discounted Cash-Flow Model. REAL ESTATE DEVELOPMENT. Land Use Feasibility Analysis. PUBLIC POLICY AND PROSPECTS FOR THE FUTURE. Government Involvement. Appendix. Compound Interest Tables. Glossary. Index.