This paper examines the relation between the investment horizon of banks and their CEO compensation, and its consequences for risk and performance. We find that banks with short-term investment intensity pay more cash bonus, exhibit higher risk and perform more poorly than banks with longer-term...

Using a unique set of data that contains 236 million banking transactions of 1.7 million Russian firms over the 2003 to 2004 period, I examine the use of quot;spacemenquot;, short-lived special purpose entities created for cash flow diversion purposes. I first estimate diversion in Russia to be...