Commercial Bank Ownership Structure and Risk Preference

Ownership structure, Voting and Risk

We analyze the determinants of ownership structure in firms when conflicts of interest on risk arise endogenously via different ownership stakes and firm decisions are made through majority voting. A large block is chosen to incentivize monitoring. Because a large blockholder holds a large share of the firm, he is averse to risky investing. This generates a conflict of interest with dispersed s...

Bank ownership, rm value and rm capital structure in Europe*

We investigate the role of banks in the ownership structure of non-…nancial …rms. Distinguishing between banks and other institutional investors as shareholders, we examine the relationship between …nancial institution ownership and the performance of the …rms in which they hold equity. We control explicitly for the capital structure decision of the …rms and the ownership decision of …nancial i...

Bank Organization, Market Structure and Risk Taking: Theory and Evidence from U.S. Commercial Banks

This paper examines (1) the change in commercial banks’ risk taking as states in the United States removed restrictions on bank branching within state borders and (2) the channels through which the removal of these restrictions affects bank risk taking. I find that, after the liberalization of branching restrictions, banks that do not expand their branch network into other markets decrease risk...

Human Migration and Commercial Bank Risk During the Financial Crisis

Commercial Policy and Foreign Ownership

*Ishikawa: Faculty of Economics, Hitotsubashi University, Kunitachi, Tokyo 186-8601, Japan. Fax: +81-(0)42-580-8882; E-mail: [email protected]. Sugita: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden. Tel: +46-8-736-9254; Email: [email protected]. Zhao: RIEB, Kobe University, Kobe 657-8501, Japan. Fax/Tel: +81-78-803-7006; E-mail: [email protected]. We than...