Better safe than sorry. Bank corporate governance, risk-taking, and performance

2021 ◽  
pp. 102039
Author(s):  
Marina Brogi ◽  
Valentina Lagasio
2018 ◽  
Vol 13 (6) ◽  
pp. 863-873
Author(s):  
Marina Zavertiaeva ◽  
Iuliia Naidenova ◽  
Petr Parshakov

According to behavioral economics, coaches may be unconsciously biased, and this could lead to deviations from rational behavior, which in turn affects team performance. We analyze the influence of a particular behavioral bias of coaches, overconfidence, on the performance of soccer teams. We use a sample of 63 coaches managing all the soccer clubs involved in the Russian Football Premier League during the four seasons between 2010 and 2013/2014. To measure overconfidence, we use a press-based metric that is generally accepted in corporate governance studies and complement it with an additional continuous measure. Coaches' overconfidence positively and significantly influences team average scores, both in the baseline regression and robustness checks. Additional testing allows us to draw conclusions regarding the inverse U-shaped relationship between overconfidence and performance. We cannot conclude that overconfidence has any effect on coaches' risk-taking that can be approximated by goals scored or allowed. We apply the well-studied methodology of overconfidence measurement to the new field of sport economics, thereby generating novel results. Although overconfidence is perceived negatively in corporate governance, we show that in sport, it is beneficial to be overconfident. The findings contribute to sport literature, more specifically to the field of performance in soccer, with results that support the importance of a coach's personal traits.


2016 ◽  
Vol 51 (2) ◽  
pp. 195-219 ◽  
Author(s):  
Sabur Mollah ◽  
M. Kabir Hassan ◽  
Omar Al Farooque ◽  
Asma Mobarek

2014 ◽  
Vol 3 (3) ◽  
pp. 53-85
Author(s):  
Shkendije Himaj

Abstract Corporate governance is viewed as an important, essential, and most significant factor for well-functioning of firms. Recent academic work and policy analyses have given insight into the governance problems in banks exposed to the financial crisis and suggest possible solutions. This paper begins by explaining the importance of corporate governance and its impact on risk taking and bank performance based on the theoretical background relevant to the corporate governance of banks. I combine the literature that looks at three areas of governance: ownership structure; board structure; and risk management, with the literature on risk-taking and performance effects in order to better assess the weight of the impact that these governance mechanisms have on both performance and risk. The paper concludes by highlighting the areas where further research is needed.


Author(s):  
Alejandra Gutiérrez Segnini

En todas las crisis bancarias que han existido, la gestión ha jugado un papel importantecomo iniciador potencial o como un multiplicador de las pérdidas y las distorsioneseconómicas, adquiriendo relevancia así el riesgo de gobierno corporativo en lasentidades financieras.La junta directiva es el elemento central y fundamental para un buen gobiernocorporativo, por lo que su debida conformación y desempeño es clave para la entidad.Muchos de los estándares de buenas prácticas en la materia ya están contenidos envarios cuerpos normativos del ordenamiento jurídico costarricense, no obstante, hayciertas debilidades y vacíos que generan malas prácticas en cuanto a la composición yfuncionamiento de las juntas directivas de la banca estatal, lo cual aumenta el riesgo degobierno corporativo en estas entidades.Así pues, se presentan una serie de recomendaciones que podrían subsanar lasdebilidades halladas, pero en general lo que se pretende es hacer consciencia de lasimplicaciones del tema, para así modificar la visión que se maneja en Costa Rica encuanto a éstos órganos colegiados, de forma tal que las personas que lideren y fijen elnorte de las entidades financieras estatales tengan el perfil necesario para llevar a cabosus tareas eficazmente.Palabras clave: Banca, gobierno corporativo, riesgo, junta directiva.AbstractIn all banking crisis that have existed, management has played an important role aspotential initiator or increasing the losses and economic distortions, therefore drawingattention towards the corporate governance risk in financial entities.The Board is fundamental to good corporate governance so that its proper compositionand performance.Many international good practices in this matter are contained in the Costa Rican legalframework. However, certain weaknesses and gaps found may be generating badpractices in terms of composition and performance of the boards of directors in statebanks, which increases the corporate governance risk in these institutions.Thus, we present a series of recommendations that could correct the weaknessesfound, but basically this proposal is intended to raise awareness of the implications ofthis matter, and so modify the vision in Costa Rica of the bank boards, so that thepeople that lead and set the course of these financial institutions have the profilerequired to carry out their tasks effectively.Keywords: bank,


2018 ◽  
Vol 34 (4) ◽  
pp. 493-509 ◽  
Author(s):  
Ahmed A. Elamer ◽  
Aws AlHares ◽  
Collins G. Ntim ◽  
Ismail Benyazid

2012 ◽  
Vol 2 (1) ◽  
pp. 51-56
Author(s):  
Wan Masliza Wan Mohammad ◽  
Rapiah Mohd Zaini ◽  
Haslina Hassan ◽  
Takunda Guest Charumbira

Since the financial crisis in year 1997, banks in Malaysia had undergone various issues and transformations, including stricter regulation on merger and acquisitions and greater enforcement of corporate governance. Besides that, the institutions had also gone through the transformation in terms of the risk assessment practice due to the stricter rulings under Basel II regulations. Taking into account of these changes, this study empirically examines the effects of corporate governance, risk and capital on the performance of banks in Malaysia. Based on 132 firm-year samples for the period of 2004-2009, study indicates a significant and negative relationship between bank risks and performance. It further reveals that the risk weighted capital (RRWC) improves bank performance. However none of the corporate governance variables have any associations with banks performance. The detail explanations of the findings along with the suggestions for future research are provided in the full text of the reports.


PLoS ONE ◽  
2020 ◽  
Vol 15 (2) ◽  
pp. e0228371 ◽  
Author(s):  
Alin Marius Andries ◽  
Daniela Balutel ◽  
Iulian Ihnatov ◽  
Silviu Gabriel Ursu

2018 ◽  
Vol 9 (5) ◽  
pp. 439-446
Author(s):  
Hamid Ait lemqeddem ◽  
◽  
Mounya Tomas ◽  

There is renewed interest in the need to focus on corporate governance in an environment where it is a performance imperative for all small and large organizations, private and public, beginner or established.The purpose of this study is to demonstrate the place of corporate governance practices in organizations to ensure that the board, officers, and directors take action to protect shareholder interests and all stakeholders. It is important to focus on the effect of these practices on improving performance and competitiveness. To do so, we opted for the hypothetico-deductive method with a quantitative approach. Our theoretical foundation is theory is agency theory.


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