scholarly journals European deposit insurance scheme and bank board composition

2020 ◽  
Vol 17 (4, Special Issue) ◽  
pp. 246-256
Author(s):  
Francesca Arnaboldi ◽  
Vincenzo Capizzi
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Deposit Insurance ◽  
Gender Composition ◽  
Bank Risk ◽  
European Level ◽  
Fixed Effects Model ◽  
Insurance Scheme ◽  
Regulatory Changes ◽  
And Gender

This paper investigates whether bank corporate governance can play a role in the aggregate risk score assigned to individual banks by regulators. We exploit regulatory changes at the European level and a fixed-effects model to reduce endogeneity issues. We contribute to the existing literature on bank corporate governance by showing that board age significantly increases bank risk. This may indicate that boards formed by older members are more entrenched and can also be less dynamic. Board size and gender composition of the board are risk-neutral.

scholarly journals The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms

2019 ◽  
Vol 10 (1) ◽  
pp. 1-13
Author(s):  
R Heru Kristanto HC ◽  
Mamduh M Hanafi ◽  
Wayan Nuka Lantara
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Firm Value ◽  
Fixed Effects ◽  
Cash Holdings ◽  
Cash Holding ◽  
Fixed Effects Model ◽  
Publicly Traded ◽  
Dynamic Panel ◽  
Panel Fixed Effects

The aim of this paper is to examine the effect of cash, optimal cash holding, deviation from target cash (the target adjustment model) on the firm value. This research uses a sample of Indonesian publicly traded firms for the period 2001-2017 (3,349 observation). This paper uses a dynamic panel fixed effects model to estimate optimal cash holdings. Hypothesis testing uses GLS fixed effect and interaction effect uses regression moderated analysis. Research finds that: first, cash, optimal cash, and deviation from target cash have an effect on the firm value. Second, corporate governance moderates the effect of cash, optimal cash, and deviation from target cash on the firm value. Third, investment positively moderates the effect of cash on the firm value. Investment negatively moderates the effect of optimal cash, deviation from target cash on the firm value. Debt negatively moderates the effect of cash, optimal cash on the firm value. Debt positively moderates the effect of deviation from target cash on the firm value. 

scholarly journals The Impact Of Good Corporate Governance To Manufacturing Firm’s Profitability And Firm’s Value

2016 ◽  
Vol 5 (2) ◽  
pp. 181-196 ◽  
Author(s):  
Johanes Sumarno ◽  
Sendy Widjaja ◽  
Subandriah Subandriah
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Fixed Effects Model ◽  
Good Corporate Governance ◽  
Oecd Principles ◽  
Equitable Treatment ◽  
The Impact

This paper studied the behavior of management toward the implementation of Good Corporate Governance in Indonesia to determine whether it has any influence towards profitability and its implication to the Manufacturing Firms’ value publicly listed in Indonesian Stock Exchange. There were 41 corporations who met the criteria of the survey. The data were analyzed using Panel Regression with fixed effects Model. The empirical findings show that the implementation of Corporate Governance in Indonesia has a positive, significant and direct impact toward firms’ profitability and firms’ value. Corporate Governance principles based on OECD principles that have positive and significant impact to both profitability and Firms’ Valueis Rights of Shareholders, Role of Stakeholders, Responsibilities of the Board Commissioners and Board of Directors. The principles that have significance and negative impact towards corporate profitability and value, are: Equitable treatment of shareholders and Disclosure and Transparencies. The most significant principle influencing profitability and firms’ value is Disclosure and Transparencies. Profitability plays a greater role in influencing Manufacturing Firms’ value in Indonesia. DOI: 10.15408/sjie.v5i2.3542

Abstract 12: Heritability of Ischemic Stroke and its Subtypes

Stroke ◽  
2012 ◽  
Vol 43 (suppl_1) ◽  
Author(s):  
Andrew E Bluher ◽  
Michael A Nalls ◽  
John W Cole ◽  
Pankaj Sharma ◽  
James F Meschia ◽  
...  
Keyword(s):  
Ischemic Stroke ◽  
Fixed Effects ◽  
Rare Variants ◽  
Phenotypic Variability ◽  
Fixed Effects Model ◽  
Stroke Subtype ◽  
Genome Wide ◽  
Weighted Means ◽  
Family Based ◽  
And Gender

Background and Purpose: Family-based methods for estimating heritability cannot discriminate between shared genetic and shared environmental exposures. Recently, methods have been developed for estimating heritability in population samples using genome-wide SNPs. We used the approach developed by Visscher and colleagues to estimate the heritability of ischemic stroke in Caucasian subjects. In addition to evaluating the overall heritability of ischemic stroke, we assessed whether stroke heritability varies by age, gender, and stroke subtype. Methods: Using publicly available software (GCTA and PLINK), we estimated ischemic stroke heritability stratified by age and gender using genome-wide association (GWA) data from three Caucasian ischemic stroke studies: Ischemic Stroke Genetics Study (ISGS), Bio-Repository of DNA in Stroke (BRAINS), and Genetics of Early-Onset Stroke (GEOS). Weighted means of site-specific heritability point estimates were combined according to a standard fixed effects model. Results: Conclusions: A SNP-based approach may be useful in discerning differences in ischemic stroke heritability between different cohorts and subtypes. Overall, our analysis estimated ischemic stroke heritability to be 31% (SE = 7%), with a suggestion of higher heritability for younger cases. Small vessel stroke showed the highest heritability (58 ± 19%), with cardioembolic showing the lowest heritability (16 ± 14%). It should be emphasized that heritability estimates are population-specific and that the method used only reflects the heritability captured by common SNP variants measured in GWA studies, and not phenotypic variability explained by rare variants.

scholarly journals Remuneration Committees’ Gender Composition as a Determinant of Executive Board Compensation Structure

2017 ◽  
Vol 10 (2) ◽  
pp. 135 ◽  
Author(s):  
Job Borrenbergs ◽  
Rui Vieira ◽  
Georgios Georgakopoulos
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Relative Weight ◽  
Gender Composition ◽  
Inequality Aversion ◽  
Fiscal Year ◽  
Theoretical Frameworks ◽  
Top Executives ◽  
Female Presence ◽  
The Relationship

This paper investigates the relationship between the gender composition of firms’ remuneration committees and the relative weight of variable monetary compensation in these firms’ top executives’ compensation packages. Previous archival research into executive compensation has mainly relied on agency theory, managerial power theory and tournament models to construct its theoretical frameworks. However, both psychological and corporate governance-related research concerning gender differences in, for instance, risk- and inequality-aversion, suggest that the gender variable should be included in the academic debate on executive compensation.Controlling for size, industry, and corporate governance variables, this paper uses simple least squares analysis to regress measures of the relative weight of variable compensation against measures of female presence in remuneration committees, in a sample of 25 806 fiscal year/executive combinations. This regression is repeated in a multilevel model that controls for firm fixed effects in a sample of 9048 fiscal year / executive combinations. The results indicate that a female presence in the remuneration committee is negatively associated with the relative weight of the annual bonus in top executives’ compensation contracts.

Board diversity and corporate risk: evidence from China

2019 ◽  
Vol 20 (2) ◽  
pp. 280-293 ◽  
Author(s):  
Kalim Ullah Bhat ◽  
Yan Chen ◽  
Khalil Jebran ◽  
Zulfiqar Ali Memon
Keyword(s):  
Risk Taking ◽  
Fixed Effects ◽  
Fixed Effects Model ◽  
Board Diversity ◽  
Content Type ◽  
Listed Firms ◽  
Governance Practices ◽  
And Gender ◽  
Task Oriented ◽  
Corporate Risk

Purpose The purpose of this study shows how overall board diversity influences corporate risk-taking. Board diversity is quantified into task-oriented diversity (tenure and education) and relation-oriented diversity (age and gender). Further, this study tests whether the association of board diversity and corporate risk varies across state-owned firms (SOEs) and non-state-owned firms (NSOEs). Design/methodology/approach The authors used a sample of Chinese listed firms over the period 1999-2017. The results are estimated using the fixed-effects model. To deal with the endogeneity problem and single model bias, the authors use a dynamic model, i.e. two-step generalized method of moment’s model. Findings The results show that both task-oriented and relation-oriented diversity reduces corporate risk. Further, the authors document that overall board diversity reduces risk-taking across different types of firms, that is, SOEs and NSOEs. These results are consistent after controlling for endogeneity problems. Practical implications The results provide implications for enhancing corporate governance practices by considering overall board diversity as an important factor influencing corporate decisions. The findings suggest that policymakers and shareholders should consider different diversity attributes important for the composition of a board, which can enhance board outcomes. Originality/value Most of the prior studies considered only one dimension of diversity, and therefore, have overlooked the overall board diversity. Unlike prior studies, this study considers four board diversity attributes – age, gender, tenure and education, and further tests their association with corporate risk. Further, this study also examines the effect of overall diversity on corporate risk in SOEs and NSOEs.

scholarly journals Examining the Relationship between Land Values and Credit Availability

2021 ◽  
pp. 1-20
Author(s):  
Ana Claudia Sant’Anna ◽  
Cortney Cowley ◽  
Ani L. Katchova
Keyword(s):  
Fixed Effects ◽  
Deposit Insurance ◽  
Land Values ◽  
County Level ◽  
Macroeconomic Factors ◽  
Credit Availability ◽  
Regulatory Changes ◽  
Panel Fixed Effects ◽  
Federal Deposit Insurance ◽  
The Impact

Abstract Increased credit availability facilitates land acquisition, but higher land values also hinder it. We investigate the impact of credit availability on land values, after regulatory changes in the lending system. We build an index of increased credit availability using Federal Reserve and Federal Deposit Insurance Corporation data. County-level panel fixed effects estimations are performed controlling for land value determinants, credit availability, and county-level macroeconomic factors. We find that estimating the effects of credit availability separately masks its total effect. Results show a 0.1 change in the index for increased credit availability is associated with 1.64–1.96% increase in land values.

scholarly journals Intergenerational support and depression among Chinese older adults: do gender and widowhood make a difference?

2015 ◽  
Vol 37 (4) ◽  
pp. 695-724 ◽  
Author(s):  
MAN GUO ◽  
IRIS CHI ◽  
MERRIL SILVERSTEIN
Keyword(s):  
Older Adults ◽  
Marital Status ◽  
Fixed Effects ◽  
Chinese Culture ◽  
Rural China ◽  
Chinese Society ◽  
Intergenerational Support ◽  
Fixed Effects Model ◽  
Chinese Older Adults ◽  
And Gender

ABSTRACTUsing four-wave panel data of 1,327 older adults in rural China, this study examined potential gender and marital status differences in the relationships between three forms of intergenerational support (monetary, instrumental and emotional support) and the level of depression of the older adults. Results from a pooled time-series fixed-effects model showed that receiving and providing monetary support had a comparable beneficial effect on mothers and fathers, but mothers benefited more psychologically than fathers from closer relationships with their children. Exchanges in instrumental support was not related to either mothers' or fathers' level of depression. Widowhood further affected the gendered relationships between support and depression in that recently widowed fathers had a significantly higher level of depression when they received more monetary support from their children. In contrast, providing monetary support to children was associated with a significantly higher level of depression among recently widowed mothers. We explained the findings in the context of familial and gender norms in the Chinese culture and temporal needs for family support that link with bereavement coping stages among older adults. We argued that the gender and marital status patterns observed in this study are attributive to more fundamental differences in men's and women's social positions in the Chinese society.

scholarly journals Low Interest Rates and Bank Risk-Taking: Has the Crisis Changed Anything? Evidence from the Eurozone

2015 ◽  
Vol 8 (1) ◽  
pp. 125-148 ◽  
Author(s):  
Alin Marius Andries ◽  
Vasile Cocriş ◽  
Ioana Pleşcău
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Risk Taking ◽  
Fixed Effects ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Bank Risk ◽  
Fixed Effects Model ◽  
Loan Loss ◽  
The Impact

AbstractThis paper examines the impact of monetary policy on bank risk-taking and the influence of the recent financial crisis on this relation. We use a dataset of 571 commercial banks from Eurozone and analyze the relation on the period from 1999 to 2011, with emphasize on the period 2008 to 2011. We use non-performing loans, loan loss provisions and Z-score as measures for bank risk-taking, while for monetary policy the proxies are short-term interest rates (computed using a Taylor rule) and long-term interest rates. We determine the relation between the two by taking into account some specific control variables and analyze it using an entity fixed-effects model and Generalized Method of Moments, alternatively. Empirical results point to a negative relation between interest rates and bank risk-taking. In addition to this, results show that the crisis has led to an additional negative impact on the relation between interest rates and bank risk-taking for the turmoil period 2008-2011.

Diversification, corporate governance, regulation and bank risk-taking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Mahnoor Hanif ◽  
Rashid Mehmood ◽  
Loi Viet Nguyen
Keyword(s):  
Corporate Governance ◽  
Emerging Economies ◽  
Risk Taking ◽  
Deposit Insurance ◽  
Generalized Method Of Moments ◽  
Bank Risk ◽  
Content Type ◽  
Diversification Strategies ◽  
Capital Regulations ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of diversification, corporate governance and capital regulations on bank risk-taking in Asian emerging economies. Design/methodology/approach The authors applied the generalized method of moments to analyze a sample of 116 listed banks of ten Asian emerging economies for the years 2010–2018. Findings The authors found that diversification, board size, CEO duality and board independence, block holders and capital regulations significantly affect bank risk-taking. In particular, nontraditional income sources such as noninterest income and adoption of diversification strategies minimize bank risk-taking. Practical implications It is expected that the outcomes of this study can be used by banks in Asian emerging economies that seek to reduce risk-taking by managing the diversification of their income streams and managing the impacts of capital regulation and implementing sound corporate governance features in monitoring their operations. This study suggests practical risk minimizing strategies for banks. First is the sourcing of nontraditional income and adoption of diversification strategies. Second, maintaining nonexecutive directors on the board would enhance monitoring of business activities. Third, maintaining deposit insurance would reduce bank’s risk. Government provides insurance to depositors to motivate them to deposit their funds into the banks. This, in return, facilitates banks to overcome risk. However, banks need to be cautious of any increase in capital ratio, as channeling funds into risky investments would increase risk. Originality/value This study is the first to investigate the impacts of corporate governance, diversification and regulation on bank’s risk-taking in a cross-country setting of ten Asian emerging economies.

scholarly journals Essays in bank lending

2019 ◽  
Author(s):  
Παναγιώτης Παπαδόπουλος
Keyword(s):  
Fixed Effects ◽  
Deposit Insurance ◽  
Bank Lending ◽  
Syndicated Loans ◽  
Insurance Scheme ◽  
Creditor Rights ◽  
Omitted Variable Bias ◽  
Home Mortgage Disclosure Act ◽  
Variable Bias ◽  
Home Mortgage

Ο τραπεζικός κλάδος διαδραματίζει κρίσιμο ρόλο στον σύγχρονο οικονομικό κόσμο, καθώς ο δανεισμός είναι μια από τις σημαντικότερες υπηρεσίες που παρέχουν οι τράπεζες και έχει ζωτικές επιπτώσεις στην κοινωνική και οικονομική ευημερία. Συγκεκριμένα, ο στεγαστικός δανεισμός είναι ζωτικής σημασίας για τη διαμόρφωση του βιοτικού επιπέδου των νοικοκυριών, ενώ ο εταιρικός δανεισμός έχει αποφασιστικό ρόλο στην ενίσχυση της πραγματικής οικονομικής δραστηριότητας και στην προώθηση της οικονομικής ανάπτυξης μιας χώρας. Η παρούσα διατριβή αποτελείται από τρία κεφάλαια τα οποία μελετούν τρία ξεχωριστά θέματα στον τομέα του τραπεζικού δανεισμού (στεγαστικά δάνεια και εταιρικά δάνεια).Στο Κεφάλαιο 1, με τίτλο «Διακρίσεις δανεισμού στις ΗΠΑ: Μια νέα μεθοδολογία και ο ρόλος της κρίσης των ενυπόθηκων δανείων», εξετάζουμε εάν υπάρχουν διακρίσεις στην παροχή και την τιμολόγηση στεγαστικών δανείων και εάν ναι, εάν το επίπεδο των διακρίσεων διαφέρει πριν και μετά την κρίση των subprime στεγαστικών δανείων. Χρησιμοποιώντας δεδομένα από 6,5 εκατομμύρια αιτήσεις δανεισμού από το 2004 έως το 2013, προτείνουμε μια νέα οικονομετρική προσέγγιση που στοχεύει να μειώσει σημαντικά την μεταβλητή μεροληψία (omitted-variable bias) της βάσης δεδομένων Home Mortgage Disclosure Act (HMDA) και να εντοπίσει το επίπεδο των φυλετικών και εθνοτικών διακρίσεων στην παροχή στεγαστικών δανείων στις Ηνωμένες Πολιτείες της Αμερικής. Σε αντίθεση με προηγούμενες μελέτες, διαπιστώνουμε, κατά μέσο όρο, πολύ μικρές διακρίσεις ως προς την παροχή δανείων. Αν και οι διακρίσεις αυξάνονται κάπως μετά το 2007, η πιθανότητα τους παραμένει πολύ κάτω από το 1%. Αντίθετα, διαπιστώνουμε ότι οι λευκοί (μη Ισπανόφωνοι) αιτούντες πληρώνουν χαμηλότερο spread για τα παρεχόμενα δάνεια κατά 0,37 (0,11) μονάδες βάσης, αποτέλεσμα που προέρχεται σχεδόν εξ ολοκλήρου από την περίοδο πριν από την κρίση.Μια βασική πολιτική για τον περιορισμό της πιθανότητας ξαφνικής και μαζικής απόσυρσης τραπεζικών καταθέσεων (bank runs) είναι η θεσμοθέτηση ενός συστήματος ασφάλισης καταθέσεων (Deposit Insurance Scheme), το οποίο μπορεί να χρηματοδοτηθεί είτε με ιδιωτικά-τραπεζικά κεφάλαια είτε από το κράτος. Στο Κεφάλαιο 2, με τίτλο «Ευλογία ή κατάρα; Η κρατική χρηματοδότηση της ασφάλισης καταθέσεων και του εταιρικού δανεισμού», μελετάμε την επίδραση της κρατικής συμμετοχής στη χρηματοδότηση του συστήματος ασφάλισης καταθέσεων στα χαρακτηριστικά των δανείων. Χρησιμοποιώντας κοινοπρακτικά δάνεια (syndicated loans) από 63 χώρες κατά την περίοδο 1985-2016, δείχνουμε ότι οι αλλαγές στο σύστημα ασφάλισης καταθέσεων από αμιγώς ιδιωτικής χρηματοδότησης σε κρατικά χρηματοδοτούμενα ή συγχρηματοδοτούμενα αυξάνουν τα spreads κατά περίπου 4,6%, αυξάνουν περαιτέρω την προμήθεια του δανείου, μειώνουν το χρόνο ωρίμανσης του δανείου και αυξάνουν τη χρήση των προμηθειών απόδοσης. Τα ευρήματά μας συνάδουν με το πρόβλημα ηθικού κινδύνου (moral hazard) που ενέχουν τα συστήματα ασφάλισης καταθέσεων που χρηματοδοτούνται αποκλειστικά από κρατικούς πόρους.Στο Κεφάλαιο 3, με τίτλο «Δικαιώματα πιστωτών και εταιρικός δανεισμός», ελέγχουμε τη συμβατική διαπίστωση ότι η ισχυρότερη νομική προστασία των πιστωτών βελτιώνει τους όρους των συμφωνιών εταιρικών δανείων. Χρησιμοποιώντας δεδομένα παγκόσμιων κοινοπρακτικών δανείων (syndicated loans) από το 1986 έως το 2005, επανεξετάζουμε την επίδραση των δικαιωμάτων των πιστωτών στους όρους των εταιρικών δανείων. Αντί να εστιάζουμε μόνο στις διαφορές μεταξύ των χωρών, διερευνούμε επίσης τη διακύμανση εντός της χώρας στον δείκτη δικαιωμάτων πιστωτών (Creditor Rights Index) χρησιμοποιώντας country fixed effects και μεθοδολογίες μελέτης γεγονότων (event-study methodologies). Σε πλήρη αντίθεση με προηγούμενα ευρήματα, διαπιστώνουμε ότι το επίπεδο προστασίας των πιστωτών δεν επηρεάζει σημαντικά τις αποφάσεις των τραπεζών σχετικά με τους όρους εταιρικού δανείου. Τα ευρήματά μας υπογραμμίζουν ότι η ενίσχυση της προστασίας των πιστωτών δεν είναι απαραίτητα ο κατάλληλος μηχανισμός για την προώθηση πιο ανταγωνιστικών όρων δανεισμού.

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