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This paper examines the effect of facial attractiveness on the compensation of bank Chief Executive Officers (CEOs …). Consistent with the so-called beauty premium hypothesis, we document that good looks pay off for bank CEOs. Specifically, by … unrelated to the annual base salary. The total compensation of above-average looking bank CEOs is almost 17 percent higher than …
Persistent link: https://www.econbiz.de/10013249486
. In this paper, we establish that liquidity and capital ratios had a positive impact on bank returns during the first … identify deposit franchise and risk management as two key channels through which stronger financial stability improved bank …
Persistent link: https://www.econbiz.de/10013221214
estate loan growth, and 15 percentage points lower crisis period stock returns. Bank decisions appear consistent with CEO …
Persistent link: https://www.econbiz.de/10013034225
We investigate the effect of executives and directors with prior banking crisis experience on bank outcomes around the … global financial crisis (GFC). Executives and directors with previous experience leading banks through a bank crisis may have … GFC. Controlling for other executive, director, and bank-level characteristics, we examine whether bank performance, risk …
Persistent link: https://www.econbiz.de/10012852192
This paper investigates (1) how the composition of executive compensation is related to a bank's incentive to take … severe moral hazard behavior, and (3) how the relation between bank executive compensation and risk taking changes before and … during the recent financial crisis. We find that bank risk measured by the Z-score and the volatility of stock returns …
Persistent link: https://www.econbiz.de/10013069368
This paper examines the influence of CEO and CFO age on bank risk-taking. Using data on large U.S. banks between 2006 … and 2018, we document a negative association between CEO age and the bank’s insolvency risk and market-based measures of … risk-taking after controlling for bank size, asset growth, funding and income structures, and various other bank …
Persistent link: https://www.econbiz.de/10014354434
This paper examines whether the systemic risk of financial institutions is associated with the risk-taking incentives generated by executive compensation. We measure managerial risk-taking incentives with the sensitivities of chief executive officer (CEO) and chief financial officer (CFO)...
Persistent link: https://www.econbiz.de/10012853910
We discuss the literature on the shift from stakeholder to shareholder finance behind the Great Financial Crisis (GFC). Traditional banks generally maximized stakeholder value (STV). But before the GFC also many of them started maximizing shareholder value (SHV). Moving from STV to SHV often...
Persistent link: https://www.econbiz.de/10013024417
We examine the effect of the Russia–Ukraine crisis on the European stock markets. Because of increased political uncertainty, geographic proximity, and the ramifications of the fresh sanctions imposed on Russia, the European stock markets tended to react negatively to this crisis. We find that...
Persistent link: https://www.econbiz.de/10013404123
We examine the effects of CEO turnover in banks. Incoming bank CEOs face problems from information asymmetry because … banks' operations are opaque and bank risk can change dramatically in a short time. Incoming bank CEOs may therefore change … bank policies to manage their personal risks. Since CEO turnover is usually endogenous, we utilize a setting where CEO …
Persistent link: https://www.econbiz.de/10012970063