Ownership, Governance Structure and Government Bailout

Francesco de Zwart
Additional contact information
Francesco de Zwart: University of Adelaide

Chapter Chapter 28 in The Key Code and Advanced Handbook for the Governance and Supervision of Banks in Australia, 2022, pp 805-816 from Springer

Abstract: Abstract This Chapter 28 examines bank ownership, governance structure and government bailout. We identify that bank size and leverage is related to the probability of bailout. We examine the ‘maturity transformation’ of bank debt and the consequent reliance for banks on a continuous supply of liquidity. Further governance variables are constructed for the level of interconnectedness of banks (high) and its effects on risk-taking and the effects on risk-taking of both the level of systemic risk and increases in bank size. We find that a controlling shareholder is predictive of greater risk and bailout and we examine the relationship between stronger governance, market valuation and performance. We also examine a high level of bank governance and the consequent effects of risk-taking on bank performance (non-crisis periods) and bank value (again, non-crisis periods). We identify that more independent boards with high institutional ownership performed worse in the crisis. We review the existing board independence variables and a new variable for a high level of institutional ownership and its effects on risk-taking. We conclude with an examination of country-level governance.

Keywords: Ownership; Government bailout; Bank size; High leverage; Maturity transformation; Interconnectedness of banks; Systemic risk; Owner-control; Relationship of strong governance; Market valuation and performance; Independent boards and institutional ownership (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-981-16-1710-2_28

Ordering information: This item can be ordered from
http://www.springer.com/9789811617102

DOI: 10.1007/978-981-16-1710-2_28

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().