 The role of banks in the governance of nonfinancial firms: Evidence from EuropeAhmed Zemzem, Khaled Guesmi and Khaoula Ftouhi Research in International Business and Finance, 2017, vol. 42, issue C, 784-793 Abstract: The aim of our research is to investigate the important role of banks in the governance of companies listed in the Euronext 100 index. Primarily, this research seeks to examine the impact of a bank’s presence within a firm, as a creditor or shareholder, on firm performance, as well as the motivations of banks to acquire holdings, and whether the presence of a bank as a shareholder of a firm facilitates its access to bank loans. Empirical analyses are conducted with a sample of 86 nonfinancial institutions listed in the Euronext 100 index over the period 2008–2013 using the three-stage least squares method. The study shows, first, that the presence of a bank within a firm, as a creditor or shareholder, is positively related to firm performance. Moreover, the firm’s performance is an important determinant of the presence of bank shareholding. Finally, the presence of a bank as a shareholder of a firm does not facilitate its access to bank loans. Keywords: Corporate governance; Bank debt; Bank ownership; Performance; Euronext 100; Simultaneous equation model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:42:y:2017:i:c:p:784-793 DOI: 10.1016/j.ribaf.2017.07.016 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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