
Contents
-
-
-
-
-
-
-
-
-
-
6.1 Introduction 6.1 Introduction
-
6.2 Why Banks are Different and the Implications for Bank Governance 6.2 Why Banks are Different and the Implications for Bank Governance
-
6.3 Compensation in Banking 6.3 Compensation in Banking
-
6.3.1 Cash and Bonus Compensation 6.3.1 Cash and Bonus Compensation
-
6.3.2 Equity-Based Compensation 6.3.2 Equity-Based Compensation
-
6.3.3 Debt-Based Compensation 6.3.3 Debt-Based Compensation
-
-
6.4 The Board of Directors and Shareholder-Oriented Governance 6.4 The Board of Directors and Shareholder-Oriented Governance
-
6.5 Board Diversity: Does It Matter Who Runs Banks? 6.5 Board Diversity: Does It Matter Who Runs Banks?
-
6.5.1 The Case for Board Diversity? 6.5.1 The Case for Board Diversity?
-
6.5.2 Empirical Evidence on Board Diversity in Banking 6.5.2 Empirical Evidence on Board Diversity in Banking
-
-
6.6 Bank Ownership: Does It Matter Who Owns Banks? 6.6 Bank Ownership: Does It Matter Who Owns Banks?
-
6.6.1 Ownership Concentration 6.6.1 Ownership Concentration
-
6.6.2 Governments as Shareholders 6.6.2 Governments as Shareholders
-
-
6.7 Risk Management Inside and Outside the Board of Directors 6.7 Risk Management Inside and Outside the Board of Directors
-
6.8 Policy Implications and Conclusions 6.8 Policy Implications and Conclusions
-
References References
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6 Corporate Governance in Banking
Get accessJens Hagendorff is Professor of Finance at the University of Edinburgh. Professor Hagendorff previously worked at Cardiff University, the Financial Stability Department of the Bank of Spain and as a lecturer at the University of Leeds. He held Visiting positions in the US, Italy, and Spain, most recently as a Visiting Fellow at The Federal Reserve Bank of Atlanta and the Bank of Spain in Madrid. He publishes and lectures on a range of topics in finance, banking, and investments, in particular the risk and return implications of corporate governance in the banking industry. His work has been published in leading international journals, including the Review of Financial Studies, Journal of Quantitative and Financial Analysis, and Review of Finance. He is one of the authors of Size, Risk and Governance in European Banking (Oxford University Press, 2013).
-
Published:07 April 2015
Cite
Abstract
Banks differ from non-financial firms. These differences affect the manner of agency conflicts between the various bank stakeholder groups compared with non-financial firms. However, the main corporate governance arrangements used in the banking industry to mitigate these agency conflicts are largely similar to those of non-financial firms. A case in point is executive compensation. No other major industry has less equity on the balance sheet than banking. However, executive pay in banking is linked to shareholder wealth just as in other industries, thus exacerbating existing incentives for bank managers to shift risk. This chapter reviews the literature on corporate governance in banking with a focus on those aspects of corporate governance in which banks (should) differ from non-financial firms, that is, executive compensation, the composition of the board of directors, ownership, and risk management. The chapter encourages a profound rethink of the corporate governance of banks.
Sign in
Personal account
- Sign in with email/username & password
- Get email alerts
- Save searches
- Purchase content
- Activate your purchase/trial code
- Add your ORCID iD
Purchase
Our books are available by subscription or purchase to libraries and institutions.
Purchasing informationMonth: | Total Views: |
---|---|
October 2022 | 3 |
December 2022 | 3 |
January 2023 | 2 |
February 2023 | 5 |
March 2023 | 7 |
April 2023 | 1 |
May 2023 | 3 |
June 2023 | 8 |
July 2023 | 5 |
August 2023 | 1 |
September 2023 | 4 |
October 2023 | 5 |
November 2023 | 6 |
December 2023 | 2 |
January 2024 | 5 |
February 2024 | 4 |
March 2024 | 4 |
April 2024 | 5 |
May 2024 | 1 |
June 2024 | 3 |
July 2024 | 1 |
January 2025 | 2 |
February 2025 | 1 |
March 2025 | 2 |
Get help with access
Institutional access
Access to content on Oxford Academic is often provided through institutional subscriptions and purchases. If you are a member of an institution with an active account, you may be able to access content in one of the following ways:
IP based access
Typically, access is provided across an institutional network to a range of IP addresses. This authentication occurs automatically, and it is not possible to sign out of an IP authenticated account.
Sign in through your institution
Choose this option to get remote access when outside your institution. Shibboleth/Open Athens technology is used to provide single sign-on between your institution’s website and Oxford Academic.
If your institution is not listed or you cannot sign in to your institution’s website, please contact your librarian or administrator.
Sign in with a library card
Enter your library card number to sign in. If you cannot sign in, please contact your librarian.
Society Members
Society member access to a journal is achieved in one of the following ways:
Sign in through society site
Many societies offer single sign-on between the society website and Oxford Academic. If you see ‘Sign in through society site’ in the sign in pane within a journal:
If you do not have a society account or have forgotten your username or password, please contact your society.
Sign in using a personal account
Some societies use Oxford Academic personal accounts to provide access to their members. See below.
Personal account
A personal account can be used to get email alerts, save searches, purchase content, and activate subscriptions.
Some societies use Oxford Academic personal accounts to provide access to their members.
Viewing your signed in accounts
Click the account icon in the top right to:
Signed in but can't access content
Oxford Academic is home to a wide variety of products. The institutional subscription may not cover the content that you are trying to access. If you believe you should have access to that content, please contact your librarian.
Institutional account management
For librarians and administrators, your personal account also provides access to institutional account management. Here you will find options to view and activate subscriptions, manage institutional settings and access options, access usage statistics, and more.