The Market's Assessment of the Financial Services Modernization Act of 1999
Year: 2001
Type: article
Abstract: We examine the impact of the events leading up to and including the passage of the Financial Services Modernization Act (FSMA) of 1999 on the stock returns of banks, brokerage firms, and insurance companies. We find that the impact is positive for all institutions. Bank gains are positively related to size and capitalization. Brokerage firms gain regardless of size, but the gains are inversely related to capitalization and insurance companies gain regardless of size or capital position. The strong positive reaction suggests that the market expects the institutions to benefit from the new opportunities created by the FSMA's passage.
Source: Financial Review
Authors: Aigbe Akhigbe, Ann Marie Whyte
Institutions: University of Akron, University of Central Florida
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1983355754