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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Earnings management behaviors under different monitoring mechanisms: The case of Islamic and conventional banks
TL;DR: In this paper, the impact of organizational religiosity on the earnings quality of listed banks in the Middle East and North Africa region was investigated, and it was found that Islamic banks are less likely to manage earnings and adopt more conservative accounting policies.
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Pay for Performance? CEO Compensation and Acquirer Returns in BHCs
TL;DR: In this article, the authors examine how managerial incentives affect acquisition decisions in the banking industry and find that higher pay-for-performance sensitivity (PPS) leads to value-enhancing acquisitions.
Posted Content
Cooperative Banks in Europe - Policy Issues
TL;DR: In this paper, the authors point out that a cooperative is built around an intergenerational endowment without final owners, which creates particular governance challenges, such as the use of the endowment for purposes other than members' best interest, and attempts at appropriation.
Posted Content
The Stock Market Reaction to the Introduction of Best Practices Codes by Spanish Firms
TL;DR: In this paper, the authors analyze the market reaction to announcements made by Spanish firms of compliance with the code of best practice and determine how the characteristics of different firms may account for the excess returns observed.
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Corporate Governance: What’s Special About Banks?
Luc Laeven,Luc Laeven +1 more
TL;DR: A review of the literature on the corporate governance of banks can be found in this paper, where a discussion of corporate governance and regulatory reforms to enhance the safety and soundness of banks is presented.
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.