Relevance of size in predicting bank failures

Basim Alzugaiby, Jairaj Gupta, Andrew W. Mullineux, Rizwan Ahmed

Research output: Contribution to journalArticlepeer-review

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Employing a statistical model-building strategy, this study aims to analyse the United States' bank failures across different size categories (small, medium, and large). Our results suggest that factors associated with bank failures vary across respective size categories, and the average marginal effects (AMEs) of mutually significant covariates also exhibit significant variability across different size classes of banks. The results are robust to up-to 3 years of lagged regression estimates, various control variables, interaction between bank size and bank charter, alternative bank size classifications, and macroeconomic crisis periods.

Original languageEnglish
JournalInternational Journal of Finance and Economics
Early online date21 Jul 2020
Publication statusE-pub ahead of print - 21 Jul 2020


  • bank failures
  • bank size
  • banking
  • default risk
  • systemic risk

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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