The Effectiveness of Bank Governance Reforms in the Wake of the Financial Crisis: A Stakeholder Approach

Sylvia Maxfield (), Liu Wang () and Mariana Magaldi de Sousa ()
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Sylvia Maxfield: Providence College
Liu Wang: Providence College
Mariana Magaldi de Sousa: Centro de Investigación y Docencia Económicas

Journal of Business Ethics, 2018, vol. 150, issue 2, No 10, 485-503

Abstract: Abstract This study examines the impact of bank corporate governance reforms in the wake of the financial crisis. These reforms correspond to criticism of shareholder-focused agency-based corporate governance practices and a renewed focus on the stakeholder impact of corporate governance lapses in the financial sector. This study differs from previous studies of corporate governance in the financial sector in using performance indicators that proxy the interests of customers and the community. Drawing on data from 134 countries over an eight-year period from 2004 to 2011, we find that the post-crisis corporate governance reforms in the banking sector appear to be effective in promoting greater bank attention to non-shareholder stakeholders’ interests. This study provides a means to conceptualize measures of bank performance from a stakeholder perspective in order to test emerging ideas about governance effectiveness in the financial sector.

Keywords: Financial sector reform; Corporate governance; Credit provision; Net interest margin; Stakeholder theory (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10551-016-3116-8

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