Strong boards, ownership concentration and EU banks’ systemic risk-taking: Evidence from the financial crisis

Francesca Battaglia and Angela Gallo

Journal of International Financial Markets, Institutions and Money, 2017, vol. 46, issue C, 128-146

Abstract: We examine the effects of board composition and ownership on traditional measures of bank risk and proxies of bank tail and systemic risk. Both banks’ corporate governance shortcomings and systemic risk-taking have been recognized among the potential causes of the 2007 financial crisis. Yet, their interaction has received less attention so far. Based on a sample of 40 European banks over the period 2006–2010, we find that the boards ‘characteristics affect banks’ systemic risk, except for board independence and that this relation depends on capital regulations, banking systems’ ownership structures and bank activity restrictions.

Keywords: Board composition; Bank ownership; Systemic risk; Financial crisis (search for similar items in EconPapers)
JEL-codes: G01 G21 G32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1042443116300713
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:46:y:2017:i:c:p:128-146

DOI: 10.1016/j.intfin.2016.08.002

Access Statistics for this article

Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely

More articles in Journal of International Financial Markets, Institutions and Money from Elsevier
Bibliographic data for series maintained by Catherine Liu ().