. The focus is on the conflicts among bank shareholders, managers, and creditors (e.g., regulators, deposit insurer …, taxpayers, depositors). This paper finds activism may generally be a destabilizing force, increasing bank risk-taking, but … creating market value for shareholders, and leaving operating returns unchanged, consistent with the empirical dominance of the …

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

to minority shareholders can be an effective corporate governance mechanism to limit expropriation by controlling … shareholders, without exacerbating risk. We find that the inclusion of such minority directors does indeed increase the … effectiveness of bank boards as it results in higher market valuations without increasing risk. Our results depend crucially on …

law hereafter), affects bank holding companies’ (BHCs) risk. Using a difference-in-differences analysis, we show that BHCs …