Publication:
Governance and Bank Valuation

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dc.contributor.authorCaprio, Gerard
dc.contributor.authorLaeven, Luc
dc.contributor.authorLevine, Ross
dc.date.accessioned2013-08-01T15:56:22Z
dc.date.available2013-08-01T15:56:22Z
dc.date.issued2004-02
dc.description.abstractWhich public policies and ownership structures enhance the governance of banks? The authors construct a new database on the ownership of banks internationally and then assess the ramifications of ownership, shareholder protection laws, and supervisory and regulatory policies on bank valuations. Except in a few countries with very strong shareholder protection laws, banks are not widely held, but rather families or the state tend to control banks. The authors find that: (i) Larger cash flow rights by the controlling owner boosts valuations; (ii) Stronger shareholder protection laws increase valuations; and (iii) Greater cash flow rights mitigate the adverse effects of weak shareholder protection laws on bank valuations. These results are consistent with the views that expropriation of minority shareholders is important internationally, that laws can restrain this expropriation, and concentrated cash flow rights represent an important mechanism for governing banks. Finally, the evidence does not support the view that empowering official supervisory and regulatory agencies will increase the market valuation of banks.en
dc.identifierhttp://documents.worldbank.org/curated/en/2004/02/4044470/governance-bank-valuation
dc.identifier.doi10.1596/1813-9450-3202
dc.identifier.urihttps://hdl.handle.net/10986/14726
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Paper;No.3202
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectBANKING
dc.subjectCORPORATE GOVERNANCE
dc.subjectSECURITIES LAW
dc.subjectSUPERVISION
dc.subjectREGULATION
dc.subjectREGULATION OF FINANCIAL INSTITUTIONS
dc.subjectBANKING SUPERVISION
dc.subjectBANK HOLDING COMPANIES ADVERSE EFFECTS
dc.subjectAGENCY PROBLEMS
dc.subjectASSET STRIPPING
dc.subjectASSETS
dc.subjectAUDITORS
dc.subjectBANK CAPITAL
dc.subjectBANK HOLDING COMPANIES
dc.subjectBANK HOLDING COMPANY
dc.subjectBANK PERFORMANCE
dc.subjectBANK REGULATION
dc.subjectBANK RISK
dc.subjectBANK SUPERVISION
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBANKS
dc.subjectBOOK VALUE
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITAL STANDARDS
dc.subjectCENTRAL BANKS
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMPETITIVENESS
dc.subjectCORPORATE CONTROL
dc.subjectCORPORATE FINANCE
dc.subjectCORPORATE GOVERNANCE
dc.subjectCOST OF CAPITAL
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITORS
dc.subjectDISCLOSURE
dc.subjectDIVIDENDS
dc.subjectEXCESSIVE RISK
dc.subjectEXPROPRIATION
dc.subjectEXTERNAL FINANCING
dc.subjectFEDERAL RESERVE BANK OF NEW YORK
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFOREIGN SHAREHOLDERS
dc.subjectGOVERNMENT REGULATION
dc.subjectGROWTH RATE
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectINSURANCE POLICIES
dc.subjectINVESTOR PROTECTION
dc.subjectLARGE SHAREHOLDERS
dc.subjectLAWS
dc.subjectLEGAL PROTECTION
dc.subjectLEGAL SYSTEMS
dc.subjectLIQUIDITY
dc.subjectMARKET VALUATION
dc.subjectMARKET VALUE
dc.subjectMUTUAL FUND
dc.subjectORGANIZATIONAL STRUCTURE
dc.subjectOWNERSHIP STRUCTURE
dc.subjectPORTFOLIO
dc.subjectPREDICTIONS
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPUBLIC POLICIES
dc.subjectREGULATORY REGIMES
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectSECURITIES MARKETS
dc.subjectSHAREHOLDERS
dc.subjectSHAREHOLDERS RIGHTS
dc.subjectSTATE OWNERSHIP
dc.subjectSTATEMENTS
dc.subjectSTOCK EXCHANGES
dc.subjectSUPERVISORY AGENCIES
dc.subjectWEALTH
dc.titleGovernance and Bank Valuationen
dspace.entity.typePublication
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2004/02/4044470/governance-bank-valuation
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid934651468779179139
okr.identifier.doi10.1596/1813-9450-3202
okr.identifier.externaldocumentum000009486_20040607165944
okr.identifier.internaldocumentum4044470
okr.identifier.reportWPS3202
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/06/07/000009486_20040607165944/Rendered/PDF/wps3202governance.pdfen
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicBanks and Banking Reform
okr.topicPublic Sector Development::Decentralization
okr.topicInternational Terrorism and Counterterrorism
okr.topicPayment Systems and Infrastructure
okr.topicFinancial Crisis Management and Restructuring
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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