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
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Book ChapterDOI
Board size and firm performance in the property-liability insurance industry.
TL;DR: In this paper, the authors found a significant inverse relation between publicly traded P&L insurer performance and board size in the post-Financial Services Modernization Act period, and found that firms with smaller board sizes on average increased board size.
DissertationDOI
Voluntary Corporate Governance Disclosure, Board Diversity, and CEO Compensation: Evidence fromPost-Apartheid South Africa
TL;DR: In this paper, the authors measure the level of compliance with 72 corporate governance (CG) provisions in the third CG code in South Africa and explore the interrelations between corporate governance quality, board diversity, and CEO compensation.
Posted Content
Introduction and Appendix to Behavioral Risk Management in the Financial Services Industry: The Role of Culture, Governance, and Financial Reporting
TL;DR: In this paper, the authors present a framework for diagnosing and changing culture, describe how corporate culture is shaped, explore the importance of effective risk management, and examine the roles of deferred cash compensation and bank cash holdings in promoting financial stability.
Journal ArticleDOI
Senior debt and market discipline : Evidence from bank-to-bank loans
TL;DR: In this paper, the authors empirically investigate whether taking senior bank loans would enhance market discipline and control risk-taking among borrowing banks, and find that borrowing banks significantly increase their collaboration with borrowing banks and increase their presence in the home markets of borrowing banks.
Journal ArticleDOI
Effect of Corporate Governance Mechanism on the Financial Performance of Banks in Nigeria
TL;DR: In this article, the authors examined the effect of corporate governance mechanisms on the financial performance of banks in Nigeria and concluded that the existence of board audit committee enhances banks' financial performance, and recommended that banks should have audit committee in their board to enhance a higher financial 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.
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.