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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Posted Content
Does Technology Lead to Better Financial Performance? A Study of Indian Commercial Banks
TL;DR: In this paper, the inter-group comparison of financial performance of Indian banks by classifying the banks on the basis of usage of technology has been conducted and the results show that the fully IT-oriented banks are financially better off than the partially IT oriented banks.
Journal ArticleDOI
Affiliation and professionalism: Alternative perspectives on decomposing the board structures of financial institutions
TL;DR: In this article, the authors empirically examined financial institutions in Taiwan and found that board affiliation is positively associated with control rights, cash flow rights and the control/cash flow deviation associated with controlling owners.
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Uncertainty and the Financial Crisis
TL;DR: In this paper, the authors argue that the extraordinary proportions of the crisis we have experienced are better understood by looking at the specific dynamics of financial innovation through securitization of illiquid assets Particularly, a perverse combination of Knightian uncertainty and externalities in banking seems to have been the major responsible for the financial crisis.
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Internal Control Quality and Bank Risk-Taking and Performance
TL;DR: In this paper, the authors examined the effect of internal control quality on future risk-taking and performance, and found that banks that disclose a material weakness in internal controls have higher risk taking and worse performance in the future, including having a higher likelihood of experiencing large losses (gains).
Book ChapterDOI
Financial markets and socially responsible investing
TL;DR: In this paper, the authors investigate how the financial sector shapes the environmental performance of corporations and assesses whether the global movement for socially responsible investing (SRI) can promote more environmentally sustainable companies.
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.