. S. bank holding companies, we obtain evidence on market discipline: we find that higher managerial ownership at most …

are regulated, including the need to obtain a charter to operate and explicit and implicit federal guarantees of bank … liabilities to reduce the probability of bank runs. These aspects of banking affect a bankś choice of risk vs. expected return …, which, in turn, affects bank performance. Banks have an incentive to reduce risk to protect the valuable charter from …

. S. bank holding companies, we obtain evidence on market discipline: we find that higher managerial ownership at most …