investigate the impacts of bank ownership and management structures on the probability of default of US commercial banks. Our …-level management, such as vice presidents, increase default risk significantly. In contrast, shareholdings of outside directors and … probability of failure. These findings suggest that high stakes in the bank induce lower-level management to take high risks due …

management structures on the probability of default. The results show that defaults are strongly influenced by a bank's ownership …, CFO, etc.) imply a substantially lower probability of failure. In contrast, high shareholdings of lower-level management … outside directors and upper-level management to control and reduce risk, while greater stakes for lower-level management seem …