significantly influencing the risk-taking attitudes of bank managers. Particularly, we intend to substantiate the theory that banks … banking sectors due to a missing ability to monitor bank managers. Our results underline that these problems appear to mislead … bank managers showing an unreasonable risk-taking behavior. In a first stage, we rely on a theoretical model explaining …

, their ownership structures, and national bank regulations. We focus on conflicts between bank managers and owners over risk …, and show that bank risk taking varies positively with the comparative power of shareholders within the corporate … governance structure of each bank. Moreover, we show that the relation between bank risk and capital regulations, deposit …

analysis suggests that bank past performance (captured by return on equity) strongly moderates the relationship between … executive compensation and risk-taking. We also find a modest U-shaped association of bank Z-score with executive compensation …. Our study appears to support the regulation on executive compensation for the sake of bank stability …