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strengthened (effective monitoring hypothesis) or weakened (myopic institutions theory) by the presence of institutional investors … in the firm’s ownership structure and corporate governance mechanism (agency theory). The study tested the proposed model …, based on the agency theory, institutional investors (as a homogeneous group) positively moderates the CSR and firm …
Persistent link: https://www.econbiz.de/10012643001
International evidence has shown how the lack of proper corporate governance in banks increases risk management, thereby reducing their financial strength. This paper addresses how corporate governance in Peruvian banks is related to their financial strength. The measure of corporate governance...
Persistent link: https://www.econbiz.de/10011554692
Using a sample of 50 largest Chinese banks during the period of 2003-2010, we explore a comprehensive set of board characteristics (size, composition and functioning of the board) and analyze their impacts on bank performance and bank asset quality in China. We find that the number of board...
Persistent link: https://www.econbiz.de/10013083271
Agency theory predicts that leverage affects agency costs and thereby the firm's influence will be influenced. The goal …
Persistent link: https://www.econbiz.de/10013069798
We investigate whether factors beyond agency conflict are important in bank governance. Specifically, we examine the possibility that confusion and overlap between the roles of CEO and Chairman have important effects on bank risk and return. Using a new data set for UK banks over the period...
Persistent link: https://www.econbiz.de/10012894674
Does state ownership breed risk-taking behavior in commercial banks? This paper examines this issue using a panel of Chinese banks. We find that state-ownership is in general associated with higher risks. In addition, we find that banks controlled by the central government have the highest...
Persistent link: https://www.econbiz.de/10013005596
We study the effect of board governance in state-owned and private banks by undertaking a study of commercial banks in India that has both bank groups. Covering a ten-year period from 2003 to 2012 that witnessed a large number of governance reforms in India, the results of our empirical analysis...
Persistent link: https://www.econbiz.de/10011852430
In this paper we investigate whether managerial overconfidence benefits shareholders when economic uncertainty is high. Consistent with managerial overconfidence mitigating the underinvestment problems exacerbated by high economic uncertainty, we find that during periods of import tariff cuts...
Persistent link: https://www.econbiz.de/10012924933
Larger firms (by sales or employment) have higher leverage. This pattern is explained using a model in which firms produce multiple varieties and borrow with the option to default against their future cash ow. A variety can die with a constant probability, implying that bigger firms (those with...
Persistent link: https://www.econbiz.de/10012058912
Government policies that attempt to alleviate credit constraints faced by small and young firms are widely adopted across countries. We study the aggregate impact of such targeted credit subsidies in a heterogeneous firm model with collateral constraints and endogenous entry and exit. A defining...
Persistent link: https://www.econbiz.de/10011756140