In this paper, we analyse whether bank owners or bank managers were the driving force behind the risks incurred in the … manager-controlled banks. The results are robust to controlling for a wide variety of bank specific, country specific …, regulatory and legal variables. Regulation does not seem to mitigate risk taking by bank owners. We find no evidence that profit …

for stock corporations. Recent empirical evidence, moreover, suggests that bank shareholders pushed for greater risk …-taking and not managers. This contrast with public view that the bank managers are pushed by aggressive remunerations schemes to …