Εταιρική διακυβέρνηση και διαχείριση κινδύνων στον τραπεζικό τομέα
Corporate governance and risk management in the banking sector
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Keywords
Bank governance ; Executive compensation ; Fraser economic freedom index ; Bank stability ; RegulationAbstract
The recent global financial crisis has called into question the effectiveness of the existing corporate governance and regulatory framework for banks. Taking into consideration that banks have unique characteristics that affect and interact with corporate governance mechanisms, it is not surprising that during the financial meltdown several economists and policymakers, amongothers, have criticized the governance of banks and in particular the board of directors. Sound corporate governance in conjunction with the appropriate regulation lead to well-functioning financial systems. However, despite the increased interest in this field, the previous empiricalstudies that focused on the impact of corporate governance on the banking sector are mixed and thus, need to be further examined. In this direction, this dissertation consists of two essays. The first essay examines the relationship between corporate governance, bank performance and risk-taking. The second essay focuses on the impact of economic freedom, credit, labor and business regulation on bank performance and risk-taking. More precisely, the first essay investigates the impact of several characteristics of the board of directors on the performance and risk-taking of banks. Using different econometric methods and several measures of performance and risk we provide new evidence as we usea sample of European banks during the period 2004-2016. Moreover, we add to the existing literature as we consider corporate governance for the first time andwe also control for any differences regarding the bank governance, taking into account the location of banks and the time period. Our results reveal that bank governance variables have a significant impact both on bank performance and risk-taking. We find that in most cases, female directors, financial experience, the one-tier system, compensation and board size lead to better bank performance and less risk-taking. However, the results may differ depending on the location and the time period. In the second essay, we examine the impact of economic freedom andregulation on bank performance and risk-taking. More precisely, we use the Fraser economic freedom index and its sub-components, namely credit, labor and business market regulation. To our knowledge, this essay is the first which examines the impact of corporate variables in combination with the Fraser economic freedom and regulation. Through this research, we want to check for any differences regarding the impact of bank governanceon bank performance and risk-taking when we implement macroeconomic factors and to reach in more robust results concerning the mechanisms of corporate governance. Indeed, our findings reveal that bank governance variables affect the performance and risk-taking of banks in a different way according to whether banksoperate in a more liberal or stricter environment.
Department
Σχολή Οικονομικών, Επιχειρηματικών και Διεθνών Σπουδών. Τμήμα Οικονομικής ΕπιστήμηςNumber of pages
188Language
EnglishCollections
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Attribution-NonCommercial-NoDerivatives 4.0 Διεθνές
Attribution-NonCommercial-NoDerivatives 4.0 Διεθνές