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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Changes in bank resolution mechanism: opportunity for change in bank governance towards stakeholder approach
TL;DR: The recent change in the bank resolution mechanism legislation for banks in the EU from a bailout to a bail-in approach that creates a new group of bank stakeholders with strong incentives to oppose excessive risk-taking is seen as an opportunity to enact substantial change in bank governance as mentioned in this paper.
Posted Content
Corporate Governance of Banks: Is More Board Independence the Solution?
TL;DR: In this article, the authors propose a different approach to the corporate governance of banks, relying on uninsured creditors rather than on the shareholders, and they propose to confer upon uninsured creditors the right to appoint a minority of members of the remuneration committee, which is effective only if debt-holders are credibly committed not to ever benefit from a bailout.
Corporate governance and banking performance: a comparative study between islamic and conventional banks in Sri Lanka
TL;DR: In this paper, a comparative study of Islamic and conventional banks' corporate governance and banking performance in Sri Lanka has been carried out, which is based on secondary data, which covers a period of four years.
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A contingent claim analysis of sunflower management under board monitoring and capital regulation
Jeng-Yan Tsai,Jyh-Horng Lin +1 more
TL;DR: In this article, the authors developed a model that combines the contingent-claim pricing of bank equity and the resulting default risk probability under a sunflower management style, showing that the CEO's decision making in the optimal bank interest margin matches the board's low default risk expectation, but that it does not match its expectations for high equity return.
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.
Journal ArticleDOI
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.