We investigate the hypothesis that shareholder empowerment may have led to more bank bailouts during the recent financial crisis. To test this hypothesis, we propose a management insulation index based on banks’ charter and by-law provisions and on the provisions of the applicable state...

How does corporate governance influence banks' resilience to crises? To address this question, we develop a measure of management entrenchment based on legal provisions. Unlike the existing alternatives, our measure considers the interactions between different provisions. We use this measure to...