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Change of management restrictions (CMRs) in loan contracts give lenders explicit ex-ante control rights over managerial retention and selection. This paper shows that lenders use CMRs to mitigate risks arising from CEO turnover, especially those related to the loss of human capital and...
Persistent link: https://www.econbiz.de/10012903452
I investigate whether restrictive loan covenants disrupt or improve firms' operating performance. Using an instrumental variables approach to address the endogenous relationship between covenant strictness and firms' efficiency, I find that stricter loan covenants lead to an increase in...
Persistent link: https://www.econbiz.de/10012904508
Corporate governance is a recent concept that encompasses the costs caused by managerial misbehavior. Corporate … governance is concerned with how organizations in general, and corporations in particular, produce value and how that value is … of value). Corporate governance is concerned with this link in general, but more specifically with the moral and ethical …
Persistent link: https://www.econbiz.de/10012906724
Some scholars have argued that common ownership, which refers to an investor's simultaneous ownership of small stockholdings in several competing companies, is anticompetitive and prohibited by the U.S. antitrust laws. Proponents of this view target in particular large investment managers that...
Persistent link: https://www.econbiz.de/10012908433
effect on innovation can be mitigated by sound corporate governance, as measured by the presence of independent directors …
Persistent link: https://www.econbiz.de/10012908541
The questions of whether there ever existed excessive risk-taking incentives from executive compensation in the financial industry, and whether top executives of financial services firms actually responded to such excessive incentives that eventually led to the crisis remain unanswered. The...
Persistent link: https://www.econbiz.de/10012910594
misconduct cases arising from third-party services. We survey financial institutions to better understand which governance … gaps in traditional governance arrangements. We find that financial institutions rely mainly on internal monitoring to …
Persistent link: https://www.econbiz.de/10012911982
Persistent link: https://www.econbiz.de/10012889303
This paper provides a two steps investigation of the literature on banking corporate governance. We firstly perform a …
Persistent link: https://www.econbiz.de/10012891591
Spanish Abstract: Este trabajo analiza cómo se han desenvuelto la concentración bancaria y la reorganización financiera en España y Portugal en el periodo post-crisis. destaca la continuidad de tres tendencias preocupantes para la estabilidad financiera en ambos países: el aumento del...
Persistent link: https://www.econbiz.de/10012894242