Open AccessPosted Content
The Corporate Governance of Banks
Jonathan R. Macey,Maureen O'Hara +1 more
TLDR
In this paper, the authors argue that commercial banks pose unique corporate governance problems for managers and regulators, as well as for claimants on the banks' cash flows, such as investors and depositors.Abstract:
The study argues that commercial banks pose unique corporate governance problems for managers and regulators, as well as for claimants on the banks' cash flows, such as investors and depositors The authors support the general principle that fiduciary duties should be owed exclusively to shareholders However, in the special case of banks, they contend that the scope of the fiduciary duties and obligations of officers and directors should be broadened to include creditors In particular, the authors call on bank directors to take solvency risk explicitly and systematically into account when making decisions or else face personal liability for failure to do soread more
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Stronger Risk Controls, Lower Risk: Evidence from U.S. Bank Holding Companies
Andrew Ellul,Vijay Yerramilli +1 more
TL;DR: In this article, the authors construct a Risk Management Index (RMI) to measure the strength and independence of the risk management function at bank holding companies (BHCs), and find that BHCs with a higher lagged RMI have lower tail risk and higher return on assets, all else equal.
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Corporate Governance of Banks in Developing Economies: Concepts and Issues
Thankom Arun,John D. Turner +1 more
TL;DR: In this article, the authors discuss the corporate governance of banking institutions in developing economies and suggest that banking reforms can only be fully implemented once a prudential regulatory system is in place, which is a prerequisite for successful divestiture of government ownership.
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Did Good Corporate Governance Improve Bank Performance During the Financial Crisis
Emilia Vähämaa,Sami Vähämaa +1 more
TL;DR: In this paper, the effects of corporate governance on bank performance during the financial crisis of 2008 were examined using data on large publicly-traded U.S. banks, and it was shown that banks with strong corporate governance practices had substantially higher stock returns in the aftermath of the market meltdown.
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Corporate Governance of Banks after the Financial Crisis - Theory, Evidence, Reforms
TL;DR: In this article, the authors analyze the particularities of banks' corporate governance with respect to a bank's financiers (shareholders, depositors, and bondholders) in a principal-agent framework and find that banks' governance mostly differs from that of a generic firm because of deposit insurance and prudential regulation.
Posted Content
Directors' Remuneration and Performance in Australian Banking
TL;DR: In this article, the relationship between directors' and chief executive officers' pay and performance within Australian banking, using panel data for the 1992-2005 period, was explored, and the evidence confirmed a strong positive and direct association between CEO remuneration and prior year bank performance.
References
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Book
The Modern Corporation and Private Property
TL;DR: Weidenbaum and Jensen as mentioned in this paper reviewed the impact of developments not fully anticipated by Berle and Means, such as the rise of the service sector, and the significant role played by institutional investors in the owner/manager equation.
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Bank Runs, Deposit Insurance, and Liquidity
TL;DR: The authors showed that bank deposit contracts can provide allocations superior to those of exchange markets, offering an explanation of how banks subject to runs can attract deposits, and showed that there are circumstances when government provision of deposit insurance can produce superior contracts.
Journal ArticleDOI
Agency Problems and the Theory of the Firm
TL;DR: In this article, the authors explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization, and set aside the presumption that a corporation has owners in any meaningful sense.
Book
A Monetary History of the United States
Milton Friedman,Anna J. Schwartz +1 more
TL;DR: The long-awaited monetary history of the United States by Friedman and Schwartz is in every sense of the term a monumental scholarly achievement as discussed by the authors, and the treatment of innumerable issues, large and small, have been brought to bear on the solution of complex and subtle economic issues.
Journal Article
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
TL;DR: In this paper, the authors integrate elements from the theory of agency, property rights and finance to develop a theory of the ownership structure of the firm and define the concept of agency costs, show its relationship to the separation and control issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears costs and why and investigate the Pareto optimality of their existence.