According to a common narrative, in addition to inadequate capital and liquidity, the failure of banks in the financial … shareholders and other stakeholders of the way in which they are run. The problem of bank governance stems from the way in which … banks are financed and regulated, from the externalities bank failures produce, and from the nature of their assets. In the …

investors. Liquidity could facilitate either cutting and running by large shareholders or, alternatively, increased monitoring …. Using an exogenous shock to liquidity in China, we document evidence of no cutting and running. We find that board members … affected by liquidity. Large shareholders also improve compensation contracts by increasing pay-performance sensitivity. These …

. Withdrawal at will can lead to the inefficient liquidation of profitable projects. In this paper I provide a theory of the …

buffers, consistent with theories of interest alignment and the charter value theory. Contradictory findings of previous … important institutions. Our findings indicate that bank owners are aware of the risk of losing charter value in an environment …

bank risk-taking behavior …

bank ties, institutional ownership and analyst coverage, are the key risk-mitigating factors. Research limitations …