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The Corporate Governance of Banks

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 so

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Citations
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The European Corporate Governance Framework: Issues and Perspectives

TL;DR: In this article, Belcredi et al. analyse four main topics in the corporate governance of European listed firms: board structure/composition and its interaction with ownership structure, board remuneration, shareholder activism and corporate governance disclosure based on the "comply-or-explain" approach.
Journal ArticleDOI

Corporate Governance, Risk Management and Ethical Investment: Evidence From Banking Industries

TL;DR: In this article, a study has been designed to investigate the managerial perceptions on interrelationship among good corporate governance, risk management, and ethical investment of the commercial banks of Bangladesh and the results suggest that the most important factors for effective corporate governance were the board of directors, auditors and managers of various departments.
Posted Content

Corporate Governance in Financial Sector Companies of Pakistan: Current State and Room for Improvement

TL;DR: In this article, the authors present a survey on the current state of corporate governance practices and reforms in the financial sector in the country and make recommendations to regulators and policymakers for future improvement in the corporate governance framework for financial sector.
Journal Article

Does corporate governance impact bank performance? -evidence from india

TL;DR: In this article, the authors examined whether corporate governance (CG)mechanisms of Indian banks affect their financial performance and concluded that only one out of ten board characteristics, namely number of board members positively affects accounting performance, while other board characteristics such as audit committee, stakeholder relations committee,nomination and remuneration committee and risk management committee are not considered for the study.
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Taxing Banks Fairly

TL;DR: In this paper, the authors argue that the big banks should pay regulatory and fiscal taxes commensurate with the insurance they enjoy and these taxes should be carefully calibrated so as not to overburden domestic banks relative to international competitors.
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

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.
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