This paper investigates the role of boards in founder-managed firms with concentrated ownership in emerging markets. The existing literature suggests that this type of company, even if they decide to recruit high-profile individuals as directors, rarely empowers the boards in the corporate...

We test the ability of boards of directors to eliminate the negative impact of CEO behavior on payout policy. We contribute to the literature by testing the ability of boards to influence CEO payout propensity. First, we show that if the compensation scheme of a CEO does not stimulate him or her...

Bank risk-taking behavior is of significant interest for researches and policy makers because financial failures due to excessive risk in this sector can have severe consequences for the bank's numerous stakeholders and for the macroeconomic system overall. A growing literature investigates the...

We propose a model in which an entrepreneur, seeking outside financing, sells a large equity share to an outside blockholder in order to signal his low propensity to extract private benefits. A conventional theoretical rationale for the presence of an outside blockholder is mitigation of the...

After the financial crisis, the necessity to support large inefficient banks had a crucial impact on a number of economies in Europe. This paper focuses on the effect that corporate governance mechanisms has on performance for commercial banks operating in developed and emerging European...

We examine the effect of shareholder coalitions on the corporate payout policy in Spain, a context characterized by the presence of dominant shareholders. Our results show that shareholder coalitions affect payout policy negatively (both for dividends and shares repurchases). This finding...