arbiter
JournalsPricingAccount

The effect of inflation and the failure of Silicon Valley bank on shareholder wealth

Bijoy Chandra Das et al.

Review of Financial Economics2026https://doi.org/10.1002/rfe.70041article
AJG 1ABDC B
Weight
0.50

What the paper says

Abstract This study examines how the collapse of Silicon Valley Bank (SVB) and heightened inflation affected shareholders wealth in U.S. financial institutions. Using daily stock returns from February 15 to March 29, 2023, we calculate abnormal and cumulative abnormal returns to measure market reactions. Applying ordinary least squares (OLS) and difference‐in‐differences methods, we record a substantial reduction in shareholder wealth linked to SVB bankruptcy, exacerbated by inflationary pressures. These results highlight the systemic nature of financial shocks, where distress in individual institution can transmit broadly across markets. Our findings enhance the literature on financial institutions by shedding the light on the protective benefits of diversification diminishing during extreme adverse events. For policymakers, investors, and firms, the findings underscore the importance of monitoring systemic risk and strengthening resilience against contagion effects in periods of heightened uncertainty.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1002/rfe.70041

Or copy a formatted citation

@article{bijoy2026,
  title        = {{The effect of inflation and the failure of Silicon Valley bank on shareholder wealth}},
  author       = {Bijoy Chandra Das et al.},
  journal      = {Review of Financial Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1002/rfe.70041},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The effect of inflation and the failure of Silicon Valley bank on shareholder wealth

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.