Bank governance, regulation and risk taking

Journal of Financial Economics

Volumn 93, Issue 2, 2009, Pages 259-275

  Laeven, Luc ^a,b,c,d   Levine, Ross ^e,f  

^a INTERNATIONAL MONETARY FUND   (United States)

^b CEPR   (United Kingdom)

^c European Corporate Governance Institute   (Belgium)

^d TILBURG UNIVERSITY   (Netherlands)

^e BROWN UNIVERSITY   (United States)

^f NATIONAL BUREAU OF ECONOMIC RESEARCH   (United States)

Author keywords

Bank regulation; Corporate governance; Financial institutions; Financial risk

Indexed keywords

EID: 67849124158     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jfineco.2008.09.003     Document Type: Article

References (44)

1. Agrawal A., and Mandelker G. Managerial incentives and corporate investment and financing decisions. Journal of Finance 42 (1987) 823-838
2. Allen F., and Gale D. Comparing Financial Systems (2000), MIT Press, Cambridge, MA
3. Barth J.R., Caprio G., and Levine R. Bank supervision and regulation: what works best?. Journal of Financial Intermediation 13 (2004) 205-248
4. Barth J.R., Caprio G., and Levine R. Rethinking Bank Regulation: Till Angels Govern (2006), Cambridge University Press, New York
5. Beck T., Demirgüç-Kunt A., and Levine R. Law, endowments, and finance. Journal of Financial Economics 70 (2003) 137-181
6. Beck T., Demirgüç-Kunt A., and Levine R. Bank supervision and corruption in lending. Journal of Monetary Economics 53 (2006) 2131-2163
7. Bennedsen M., Nielsen K., Perez-Gonzalez F., and Wolfenzon D. Inside the family firm: the role of families in succession decisions and performance. Quarterly Journal of Economics 122 (2007) 647-691
8. Berger A., Saunders A., Scalise J., and Udell G. The effects of bank mergers and acquisitions on small business lending. Journal of Financial Economics 50 (1998) 187-229
9. Bernanke B. Nonmonetary effects of the financial crisis in the propagation of the great depression. American Economic Review 73 (1983) 257-276
10. Bitler M., Moskowitz T., and Vissing-Jorgensen A. Testing agency theory with entrepreneur effort and wealth. Journal of Finance 60 (2005) 539-576
11. Boyd J., Chang C., and Smith B.D. Moral hazard under commercial and universal banking. Journal of Money, Credit, and Banking 30 (1998) 426-468
12. Boyd, J., Hakenes, H., 2008. Looting and gambling in banking crises. Mimeo, University of Minnesota, Minneapolis, MN.
13. Boyd J., and De Nicolo G. The theory of bank risk taking and competition revisited. Journal of Finance 60 (2005) 1329-1343
14. Buser S., Chen A., and Kane E. Federal deposit insurance, regulatory policy, and optimal bank capital. Journal of Finance 36 (1981) 51-60
15. Calomiris C., and Kahn C. The role of demandable debt in structuring optimal banking arrangements. American Economic Review 81 (1991) 497-513
16. Calomiris C., and Mason J. Contagion and bank failures during the Great Depression: the Chicago banking panic of June 1932. American Economic Review 87 (1997) 863-884
17. Calomiris C., and Mason J. Consequences of US bank distress during the Depression. American Economic Review 93 (2003) 937-947
18. Calomiris C., and Mason J. Fundamentals, panics and bank distress during the Depression. American Economic Review 93 (2003) 1615-1647
19. Caprio G., Laeven L., and Levine R. Ownership and bank valuation. Journal of Financial Intermediation 16 (2007) 584-617
20. Demirguc-Kunt A., and Detragiache E. Does deposit insurance increase banking system stability? An empirical investigation. Journal of Monetary Economics 49 (2002) 1373-1406
21. Demirguc-Kunt A., Kane E., and Laeven L. Deposit Insurance around the World: Issues of Design and Implementation (2008), MIT Press, Cambridge, MA
22. Demsetz H., and Lehn K. The structure of corporate ownership: causes and consequences. Journal of Political Economy 93 (1985) 1155-1177
23. Esty B. The impact of contingent liability on commercial bank risk taking. Journal of Financial Economics 47 (1998) 189-218
24. Galai D., and Masulis R. The option pricing model and the risk factor of stock. Journal of Financial Economics 3 (1976) 53-81
25. Gorton G., and Rosen R. Corporate control, portfolio choices, and the decline of banking. Journal of Finance 50 (1995) 1377-1420
26. Hellmann T., Murdock K., and Stiglitz J. Liberalization, moral hazard in banking, and prudential regulation: are capital requirements enough?. American Economic Review 90 (2000) 147-165
27. Houston J.F., and James C. CEO compensation and bank risk: is compensation in banking structured to promote risk taking?. Journal of Monetary Economics 36 (1995) 405-431
28. Jensen M., and Meckling W. Theory of the firm: managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3 (1976) 305-360
29. John K., Litov L., and Yeung B. Corporate governance and managerial risk taking: theory and evidence. Journal of Finance 63 (2008) 1679-1728
30. John K., Saunders A., and L.W. Senbet L.W. A theory of bank regulation and management compensation. Review of Financial Studies 13 (2000) 95-125
31. Kane E. The Gathering Crisis in Federal Deposit Insurance (1985), MIT Press, Cambridge, MA
32. Keeley M. Deposit insurance, risk, and market power in banking. American Economic Review 80 (1990) 1183-1200
33. Kim D., and Santomero A. Risk in banking and capital regulation. Journal of Finance 43 (1994) 1219-1233
34. Koehn M., and Santomero A. Regulation of bank capital and portfolio risk. Journal of Finance 35 (1980) 1235-1244
35. Kroszner R., and Rajan R. Is the Glass-Steagall Act justified? A study of the US experience with universal banking before 1933. American Economic Review 84 (1994) 810-832
36. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R. Law and finance. Journal of Political Economy 106 (1998) 1113-1155
37. Laeven L., and Levine R. Is there a diversification discount in financial conglomerates?. Journal of Financial Economics 85 (2007) 331-367
38. Laeven L., and Levine R. Complex ownership structures and corporate valuations. Review of Financial Studies 21 (2008) 579-604
39. Merton R. An analytical derivation of the cost of deposit insurance and loan guarantees: an application of modern option pricing theory. Journal of Banking and Finance 1 (1977) 3-11
40. Perez-Gonzalez F. Inherited control and firm performance. American Economic Review 96 (2006) 1559-1588
41. Roy A.D. Safety first and the holding of assets. Econometrica 20 (1952) 431-449
42. Saunders A., Strock E., and Travlos N.G. Ownership structure, deregulation, and bank risk taking. Journal of Finance 45 (1990) 643-654
43. Schranz M. Takeovers improve firm performance: evidence from the banking industry. Journal of Political Economy 101 (1993) 299-326
44. Shleifer A., and Vishny R. Large shareholders and corporate control. Journal of Political Economy 94 (1986) 461-488