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In this updated Closer Look, we examine the tensions between corporate culture, financial incentives, and employee conduct as illustrated by the Wells Fargo cross-selling scandal. In 2016, Wells Fargo admitted that employees had opened as many as 2 million accounts without customer authorization...
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A large body of literature finds that managerial overconfidence increases risk-taking by financial institutions. This … paper shows that financial regulation can be effective at mitigating this type of risk. Exploiting regulatory changes … introduced after the financial crisis as a natural experiment, I find that overconfidence-induced risk-taking decreases in …
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risk-taking behavior (RTB) as dependent variables. Meanwhile, board gender diversity (BGD), female CEO (FCEO), female …
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