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(CG) and default probability in Pakistan. Such attention is required due to poor bank governance, which threatens banks …' stability. This empirical study's objective is to ascertain the impact of CG on bank default probability by considering banking … findings-show a significant relationship between banks' CG and bank efficiency. Banks' better CG practices will improve bank …
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In moral hazard models, bank shareholders have incentives to transfer wealth from the deposit insurer - that is … value, and a risk measure, this paper develops a semi-parametric model for estimating the critical level of bank risk at … despite the difficult financial environment, shareholders' risk-taking incentive was confined primarily to a small fraction of …
Persistent link: https://www.econbiz.de/10001630859
An effective bank resolution regime requires taking action while the bank still has positive net worth and shareholder … claims still have economic value. Such actions raise a number of legal issues with respect to the rights of shareholders …. This paper aims to consider how to strike a balance between the need to protect the legitimate rights of shareholders and …
Persistent link: https://www.econbiz.de/10013130445
This paper studies the link between the agency costs of equity and the agency costs of debt. Using a unique sample of the ownership structure of single and dual class firms as well as hand-collected data on loan contracts, we find that the agency cost of debt – proxied by various loan...
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shareholder engagement. However, this shareholder engagement strategy only makes sense if the risk appetite of bank shareholders … that is triggered by bank failure. I discuss how this has the potential to reduce bank shareholders' risk appetite, and … aligned with the interests of shareholders. As a result, a plethora of proposals have been put forward seeking to increase …
Persistent link: https://www.econbiz.de/10012973657