Corporate control , bank risk taking , and the health of the banking industry q
نویسنده
چکیده
We present evidence that managerial shareholdings are an important determinant of bank risk-taking. Managerial shareholdings are positively related to total and ®rm speci®c risk in the late 1980s when banking was relatively less regulated and when the industry was under considerable ®nancial stress. However, following legislation in 1989 and 1991 designed to reduce risk-taking and also re ̄ecting substantial improvements in bank franchise value, managerial shareholdings and total and ®rm speci®c risk became negatively related in the early 1990s. In contrast, systematic risk was unrelated to managerial ownership in both periods. Ó 2000 Elsevier Science B.V. All rights reserved.
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