The Impact of Rediscount, Official Cash Rate Target and Prime Rate Changes on Selected Treasury, Equity and Futures Securities in Australia for the Period 1986 to 1995

Prime rate increases generated a negative equity reaction for national operating banks but a positive impact for regional banks. This was consistent with the Stackelberg model developed in the study. Further, it was found that Australia and New Zealand Banking Corporation (ANZ) initiated decreases and Westpac Banking Corporation (WBC) initiated increases generated a positive share reaction for their stock. In contrast, National Australia Bank (NAB) shares elicited an insignificant reaction for their prime rate initiation increases and decreases. Selected profitability, efficiency and credit quality ratios for the respective banks were examined to explain the observed equity response.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Finance

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2015

Author dc:creator

• Gasbarro, Domenico

Contributors dc:contributor

• Pennacchi, George G.

• Economics, Finance

Language dc:language

eng

Identifier

(MiAaPQ)AAI9737111

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/87443