Original scientific paper
https://doi.org/10.1080/1331677X.2018.1436457
The influence of corporate governance on bank risk during a financial crisis
J. Augusto Felício
; ISEG – Lisbon School of Economics and Management, Universidade de Lisboa, Lisbon, Portugal
Ricardo Rodrigues
; CEGE – Centre for Management Studies, ISEG – Lisbon School of Economics and Management, Lisbon, Portugal
Hugh Grove
; Daniels College of Business, University of Denver, Denver, USA
Adam Greiner
; Daniels College of Business, University of Denver, Denver, USA
Abstract
Using agency theory, we explore the relationship between corporate
governance mechanisms and bank risk. We employ panel data analysis
to study the 97 largest European listed banks between 2006 and 2010,
thereby covering the most recent international financial crisis. The
results show that corporate governance mechanisms influence bank
risk. During the financial crisis, different governance mechanisms can
minimise or accentuate the agency conflict between shareholders and
managers. In our model, bank size and G.D.P. per capita also exert a
considerable influence.
Keywords
Corporate governance; Bank risk; Financial crisis; Agency theory; Board of directors; Panel data
Hrčak ID:
206093
URI
Publication date:
3.12.2018.
Visits: 1.821 *