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...

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 distributed among the members of the corporation, its...

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...

We examine whether institutional investors with short-term incentives affect firms' innovation performance. We find that firms with a greater concentration of transient and quasi-indexer institutional investors are associated with lower innovation performance, as measured by patents and...

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...

With financial institutions increasingly outsourcing their activities, they face a record number of fraud and misconduct cases arising from third-party services. We survey financial institutions to better understand which governance mechanisms may improve the monitoring and management of...

This paper provides a two steps investigation of the literature on banking corporate governance. We firstly perform a systematic literature review on the academics papers focused on risk management, compensation and ownership structure of banks. Then we run a meta-analysis investigation over...

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...

This paper discusses how Contingent Convertible Bonds (CCB) influence the risk-taking behaviour of managers. A methodology to measure the impact is presented. The results show that the decision of issuing CCB to finance the firm's assets sets incentives to managers to increase risk, in case the...