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The Corporate Governance of Banks

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 so

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The Effect of Board and Ownership Structure on the Efficiency of Banks in Tunisia: The Stochastic Frontier Approach

TL;DR: In this paper, the authors explore the governance characteristics of Tunisian listed banks and detect the impact of the internal governance mechanisms on their efficiency during the period 2002-2009, and find that the structure and the size of the board of directors and the ownership structures present divergent effects on the banks efficiency.
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Impact of board attributes on stock liquidity: evidence from Pakistani panel data

TL;DR: In this paper , the impact of board characteristics on the stock liquidity of Pakistani listed non-financial firms for the period 2007-2016 was investigated using fixed-effects regression model on a sample of 170 nonfinancial firms listed on the Pakistan Stock Exchange for regressing the effect of board attributes on stock liquidity while for addressing the endogeneity two-stage least square (2SLS) and lagged structure models are used.
Journal ArticleDOI

ESG dimensions and bank performance: an empirical investigation in Italy

TL;DR: In this paper , the authors investigated the impact of environmental performance, social responsibility and corporate governance on bank performance in the Italian banking sector and found that ESG policies negatively affect operational and market performance.
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Corporate governance in the financial services sector of small island economies: a case study of mauritius

TL;DR: In this paper, the authors investigated the practices of corporate governance in the financial services sector of small island economies with special reference to banks and insurance companies in Mauritius with a view to assess the level of compliance.
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.
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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.
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A Monetary History of the United States

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.
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