We analyze the impact of information asymmetry on bank default risk in Europe from 1993 to 2011 and show that banks that are more difficult to value by investors are characterized by a higher default risk. The risk-increasing effect of information asymmetry is present both before and during the...

We analyze the appointments of outside CEOs of financial and non-financial firms as independent directors on US bank boards and their implications for the banks and the outside CEO firms. We show that outside CEOs from financial firms match with less traditional banks and their appointment...

Banks are growing ever larger compared to their national economies. We show that increases in relative bank size (measured as a bank's liabilities divided by national GDP) are linked to banks displaying higher tail risk. This effect is not entirely due to risk channels that disproportionately...

Using a unique international dataset, we show that the CEOs of large banks exhibit an increased probability of forced turnover when their organizations are more exposed to idiosyncratic tail risks. The importance of idiosyncratic tail risk in CEO dismissals is strengthened when there is more...

Outside CEOs from non-financial firms match with boards of lending-oriented banks and are sought for their networks. They do not improve board advising and monitoring but their appointment results in lending expansion, increased bank CEO compensation, and more bank debt for their firms. The...