lower the default risk of a bank. However, we find no evidence of cash bonuses exerting a risk-reducing effect when banks … are financially distressed or when banks operate under weak bank regulatory regimes. Our results link bonus compensation …

bank CEOs. For a panel of US and European banks, we employ the Merton distance to default model to estimate how bonus … payments and option holdings impact the level of bank default risk targeted by CEOs. We find that CEO cash bonuses reduce …

tests, asking do they add value to the information available in the bank capital ratios observed at the start of the stress … holding of domestic government bonds all require a bank-specific approach in the supervisory review and evaluation process …

the sovereign debt crisis. This paper investigates the impact of this announcement on bank share prices, bank CDS spreads … and sovereign CDS spreads. The main private beneficiaries were bank creditors, especially of banks heavily exposed to … CDS spreads. The combined gains of bank debt holders and shareholders exceed the increase in the value of their sovereign …