Professor Florian Heider, PhD

Professor Florian Heider, PhD
Current Position

since 6/16

Research Affiliate

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 12/22


Leibniz Institute for Financial Research SAFE

since 12/22


Goethe University Frankfurt

Research Interests

  • banking
  • corporate finance
  • financial market

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Professor Florian Heider, PhD
Professor Florian Heider, PhD
- Department Präsidialbereich
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The Determinants of Bank Capital Structure

Reint E. Gropp Florian Heider

in: Review of Finance, No. 4, 2010


The paper shows that mispriced deposit insurance and capital regulation were of second-order importance in determining the capital structure of large U.S. and European banks during 1991 to 2004. Instead, standard cross-sectional determinants of non-financial firms’ leverage carry over to banks, except for banks whose capital ratio is close to the regulatory minimum. Consistent with a reduced role of deposit insurance, we document a shift in banks’ liability structure away from deposits towards non-deposit liabilities. We find that unobserved time-invariant bank fixed-effects are ultimately the most important determinant of banks’ capital structures and that banks’ leverage converges to bank specific, time-invariant targets.

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