over management's portfolio selection. The paper demonstrates that rational shareholders - that anticipate these endogenous …

for stock corporations. Recent empirical evidence, moreover, suggests that bank shareholders pushed for greater risk …-taking and not managers. This contrast with public view that the bank managers are pushed by aggressive remunerations schemes to …

, suggests that shareholders pushed for greater risk-taking and not managers. This contrast with public view that the bank …, since government officials may have other interests than private shareholders and may be less motivated to monitor the … management. Politicians may also be less educated and experienced to fulfil their role as monitor of bank managers. This …