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
Citations
More filters
Posted Content
Is corporate governance different for bank holding companies
Renee B. Adams,Hamid Mehran +1 more
TL;DR: In this article, the authors examine corporate governance in banking firms and compare their differences and similarities vis-a-vis banking and manufacturing firms, and discuss the potential benefits and costs associated with some of the corporate governance variables.
Posted Content
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 investigate whether U.S. bank holding companies with strong and independent risk management functions had lower aggregate risk and downside risk and find that BHCs with a high RMI had lower exposures to mortgage-backed securities and risky trading assets, were less active in trading off-balance sheet derivatives, and generally fared better in terms of operating performance and lower downside risk during the crisis years (2007 and 2008).
Journal ArticleDOI
Does Board Structure in Banks Really Affect Their Performance
TL;DR: In this paper, a broad panel of large US bank holding companies over the period 1997-2011 was used to study whether board structure (board size, independence and gender diversity) in banks relates to performance.
Journal ArticleDOI
Does board structure in banks really affect their performance
Shams Pathan,Robert W. Faff +1 more
TL;DR: In this paper, a broad panel of large US bank holding companies over the period 1997-2011 was used to study whether board structure (board size, independence and gender diversity) in banks relates to performance.
Journal ArticleDOI
Governance and Performance of Microfinance Institutions in Central and Eastern Europe and the Newly Independent States
TL;DR: In this paper, the authors present the first evidence on the impact of governance on outreach and sustainability of microfinance institutions in Central and Eastern Europe and the Newly Independent States, finding that performance-based compensation of managers is not associated with better-performing micro-finance organizations; lower wages suggested for mission-driven organizations worsen outreach, while managers' experience improves performance.
References
More filters
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.