Publication:
How Does Corporate Governance Affect Bank Capitalization Strategies?

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dc.contributor.authorAnginer, Deniz
dc.contributor.authorDemirguc-Kunt, Asli
dc.contributor.authorHuizinga, Harry
dc.contributor.authorMa, Kebin
dc.date.accessioned2014-02-04T16:25:33Z
dc.date.available2014-02-04T16:25:33Z
dc.date.issued2013-10
dc.description.abstractThis paper examines how corporate governance and executive compensation affected bank capitalization strategies for an international sample of banks in 2003-2011. "Good" corporate governance, which favors shareholder interests, is found to give rise to lower bank capitalization. Boards of intermediate size, separation of the chief executive officer and chairman roles, and an absence of anti-takeover provisions, in particular, lead to low bank capitalization. However, executive options and stock wealth invested in the bank are associated with better capitalization except just before the crisis in 2006. In that year, stock options wealth was associated with lower capitalization, which suggests that potential gains from taking on more bank risk outweighed the prospect of additional loss. Banks' tendencies to continue payouts to shareholders after experiencing negative income shocks are shown to reflect executive risk-taking incentives.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/10/18343642/corporate-governance-affect-bank-capitalization-strategies
dc.identifier.doi10.1596/1813-9450-6636
dc.identifier.urihttps://hdl.handle.net/10986/16853
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6636
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAFFILIATED ORGANIZATIONS
dc.subjectAGENCY COSTS
dc.subjectAGENCY PROBLEMS
dc.subjectANTI-TAKEOVER PROVISION
dc.subjectANTI-TAKEOVER PROVISIONS
dc.subjectASSETS RATIO
dc.subjectBAILOUTS
dc.subjectBANK ASSETS
dc.subjectBANK CAPITAL
dc.subjectBANK CAPITALIZATION
dc.subjectBANK FAILURE
dc.subjectBANK FAILURES
dc.subjectBANK HOLDING
dc.subjectBANK HOLDING COMPANIES
dc.subjectBANK MARKET
dc.subjectBANK REGULATION
dc.subjectBANK RISK
dc.subjectBANK VALUATION
dc.subjectBANKING CRISIS
dc.subjectBANKING INDUSTRY
dc.subjectBANKS
dc.subjectBOARD MEMBERS
dc.subjectBOARD MEMBERSHIP
dc.subjectBOOK VALUE
dc.subjectBUSINESS CYCLE
dc.subjectCAPITAL ADJUSTMENT
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL STRUCTURE
dc.subjectCAPITAL STRUCTURES
dc.subjectCASH FLOWS
dc.subjectCDS
dc.subjectCEO
dc.subjectCEOS
dc.subjectCHECKS
dc.subjectCHIEF EXECUTIVE
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMON EQUITY
dc.subjectCOMMON SHARE
dc.subjectCOMMON SHAREHOLDER
dc.subjectCOMMON SHAREHOLDERS
dc.subjectCOMMON SHARES
dc.subjectCOMPANIES ACT
dc.subjectCOMPANY
dc.subjectCOMPENSATION PACKAGE
dc.subjectCOMPENSATION PACKAGES
dc.subjectCOMPENSATION POLICIES
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORPORATE GOVERNANCE AFFECT
dc.subjectCORPORATE GOVERNANCE AFFECTS
dc.subjectDEBT
dc.subjectDELAWARE
dc.subjectDELTA
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEVELOPMENT POLICY
dc.subjectDIVIDEND PAYMENT
dc.subjectDIVIDEND PAYMENTS
dc.subjectDIVIDEND POLICIES
dc.subjectDIVIDEND POLICY
dc.subjectDIVIDENDS
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectEQUITY CAPITAL
dc.subjectEQUITY CAPITAL MARKET
dc.subjectEX ANTE
dc.subjectEXPECTED VALUE
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL STUDIES
dc.subjectFREE RIDER
dc.subjectFREE RIDER PROBLEMS
dc.subjectGOVERNANCE ISSUES
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT GUARANTEES
dc.subjectHUMAN CAPITAL
dc.subjectINCENTIVES OF SHAREHOLDERS
dc.subjectINCOME
dc.subjectINCORPORATED
dc.subjectINDEPENDENT BOARDS
dc.subjectINDEPENDENT DIRECTOR
dc.subjectINDEPENDENT DIRECTORS
dc.subjectINSTITUTIONAL SHAREHOLDER
dc.subjectINSURANCE PREMIUM
dc.subjectINTERESTS OF SHAREHOLDERS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FINANCIAL CRISIS
dc.subjectISSUANCE
dc.subjectLIMITED
dc.subjectLOAN
dc.subjectLOWER LEVERAGE
dc.subjectMANAGERS
dc.subjectMARKET DATA
dc.subjectMARKET VALUE
dc.subjectMINORITY INTERESTS
dc.subjectMINORITY SHAREHOLDER
dc.subjectMINORITY SHAREHOLDER RIGHTS
dc.subjectMONETARY FUND
dc.subjectMORTGAGE
dc.subjectMORTGAGE-BACKED SECURITIES
dc.subjectNEGATIVE INCOME SHOCK
dc.subjectNEGATIVE INCOME SHOCKS
dc.subjectNEGATIVE SHOCK
dc.subjectNEGATIVE SHOCKS
dc.subjectPAYOUT
dc.subjectPENSION
dc.subjectPENSION RIGHTS
dc.subjectPORTFOLIO
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPOSITIVE COEFFICIENTS
dc.subjectPRICE INCREASES
dc.subjectPRICE MOVEMENTS
dc.subjectPRICE RISK
dc.subjectPRICE VOLATILITY
dc.subjectPRINCIPLE OF SHAREHOLDER PRIMACY
dc.subjectPRIVATE INVESTORS
dc.subjectPROXY
dc.subjectRATE OF RETURN
dc.subjectRESERVES
dc.subjectRETURN
dc.subjectRETURN ON ASSETS
dc.subjectRETURNS
dc.subjectRISK CONTROLS
dc.subjectRISK TAKING
dc.subjectRISK WEIGHTED ASSETS
dc.subjectSAFETY NET
dc.subjectSHARE OWNERSHIP
dc.subjectSHAREHOLDER
dc.subjectSHAREHOLDER INTERESTS
dc.subjectSHAREHOLDER VALUE
dc.subjectSHAREHOLDERS
dc.subjectSTOCK INVESTORS
dc.subjectSTOCK ISSUANCE
dc.subjectSTOCK MARKET
dc.subjectSTOCK OPTION
dc.subjectSTOCK OPTIONS
dc.subjectSTOCK OWNERSHIP
dc.subjectSTOCK PRICE
dc.subjectSUBORDINATED DEBT
dc.subjectTAKEOVER
dc.subjectTANGIBLE ASSETS
dc.subjectTAX
dc.subjectTIER 1 CAPITAL
dc.subjectTIER 2 CAPITAL
dc.subjectVALUATION
dc.subjectVALUATIONS
dc.subjectWEALTH
dc.titleHow Does Corporate Governance Affect Bank Capitalization Strategies?en
dspace.entity.typePublication
okr.crossref.titleHow Does Corporate Governance Affect Bank Capitalization Strategies?
okr.date.disclosure2013-10-01
okr.date.doiregistration2025-04-10T11:46:21.264329Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/10/18343642/corporate-governance-affect-bank-capitalization-strategies
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid438291468166183285
okr.identifier.doi10.1596/1813-9450-6636
okr.identifier.externaldocumentum000158349_20131003130836
okr.identifier.internaldocumentum18343642
okr.identifier.reportWPS6636
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/03/000158349_20131003130836/Rendered/PDF/WPS6636.pdfen
okr.sectorFinance :: Banking
okr.themeFinancial and private sector development::Other financial and private sector development
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicBanks and Banking Reform
okr.topicEconomic Theory and Research
okr.topicLaw and Development::Corporate Law
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitFinance and Private Sector Development Team, Development Research Group
okr.volume1 of 1
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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