Risk tasking behaviour and ownership in the banking industry: the Spanish evidence
| dc.contributor.author | García Marco, Teresa | |
| dc.contributor.author | Robles Fernández, María Dolores | |
| dc.date.accessioned | 2023-06-20T16:39:28Z | |
| dc.date.available | 2023-06-20T16:39:28Z | |
| dc.date.issued | 2005 | |
| dc.description.abstract | This paper analyses the determinant of risk_taking in the Spanish financial intermediaries with special emphasis on the ownership structure and size of the different entities. On the one hand, the soecific legal configuration of Spanish Savings banks may lead them to differ from Commercial banks in their risk behaviour. In particular, they may make riskier investments. Nevertheless,other theories indicate that greater stockholder control in Commercial banks may induce them towards greater risk_taking in certain situations. In this paper we test these hypotheses with a dynamic pañel data model (1993_2000) for Spanish Commercial banks and Savings banks. We analyse whether differences in risk behaviour are related to different ownership structures or to other factors such as the size of the entity. | |
| dc.description.faculty | Fac. de Ciencias Económicas y Empresariales | |
| dc.description.faculty | Instituto Complutense de Análisis Económico (ICAE) | |
| dc.description.refereed | FALSE | |
| dc.description.status | pub | |
| dc.eprint.id | https://eprints.ucm.es/id/eprint/7898 | |
| dc.identifier.relatedurl | https://www.ucm.es/icae | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14352/56627 | |
| dc.issue.number | 07 | |
| dc.language.iso | eng | |
| dc.page.total | 36 | |
| dc.publication.place | Madrid | |
| dc.publisher | Instituto Complutense de Análisis Económico. Universidad Complutense de Madrid | |
| dc.relation.ispartofseries | Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE) | |
| dc.rights.accessRights | open access | |
| dc.subject.jel | C33 | |
| dc.subject.jel | G21 | |
| dc.subject.jel | G32 | |
| dc.subject.keyword | Commercial banks | |
| dc.subject.keyword | Savings banks | |
| dc.subject.keyword | Corporate control | |
| dc.subject.keyword | Ownership structure | |
| dc.subject.keyword | Bank risk_taking | |
| dc.subject.ucm | Finanzas | |
| dc.subject.ucm | Mercados bursátiles y financieros | |
| dc.subject.ucm | Bancos y cajas | |
| dc.title | Risk tasking behaviour and ownership in the banking industry: the Spanish evidence | |
| dc.type | technical report | |
| dc.volume.number | 2005 | |
| dcterms.references | Akerlof, G. A., & Romer, P. M. (1993). Looting: The economic underworld of bankruptcy for profit. Brookings Papers on Economic Activity, 2, 1–60. Allen, L., and Cebenoyan, A. S. (1991). Bank acquisitions and ownership structure: Theory and evidence. Journal of Banking and Finance, 15, 425–448. Anderson, R., & Fraser, D. R. (2000). Corporate control, bank risk taking, and the health of the banking industry. Journal of Banking and Finance, 24, 1383–1398. Arellano, M., & Bond, S. (1991). Some test of specification for panel data: Monte Carlo evidence and application to employment equations. Review of Economic Studies, 58, 277–297. Arellano, M., & Bond, S. (1998). Dynamic panel data estimation using DPD98 for GAUSS—A guide for users. Madrid: CEMFI. Barth, J. R. (1991). The great savings and loan debacle. Washington, DC: American Enterprise Institute Press. Barth, J. R., Caprio, G., Jr., & Levine, R. (2004). Bank supervision and regulation: What works best? Journal of Financial Intermediation, 13, 205–248. Blasko, M., & Sinkey, J. F. (2006). Bank asset structure, real-estate lending and risk-taking. The Quarterly Review of Economics and Finance, 46, 53–81. Boyd, J., Graham, S., & Hewitt, R. (1993). Bank holding company mergers with non-bank financial firms: Effects on the risk of failure. Journal of Banking and Finance, 17, 43–63. Caprio, G., & Levine, R. (2002). Corporate governance in finance: Concepts and international observations. In R. E. Litan, M. Pomerleano, & V. Sundararajan (Eds.), Financial sector governance: The roles of the private and public sectors. Brookings Institution Press. Cebenoyan, A. S., Cooperman, E. S., & Register, C. A. (1999). Ownership structure, charter value and risk-taking behavior of thrifts. Financial Management, 28(1), 43–60. Ciancanelli, P., & Reyes-Gonzalez, J. A. (2000). Corporate governance in banking: A conceptual framework. Social Science Electronic Publishing. Chen, C., Steiner, T., & Whyte, A. M. (1998). Risk taking behavior and management ownership in depository institutions. The Journal of Financial Research, 21, 1–16. Cordell, L. R., MacDonald, G. D., & Wohar, M. E. (1993). Corporate ownership and the thrift crisis. Journal of Law and Economics, 36, 719–756. Covitz, D. M., Hancock, D., & Kwast, M. L. (2004). Market discipline in banking reconsidered: The role of deposit insurance reform and funding manager decisions. Federal Reserve Board FEDS Series 2004-53. Crawford, A. J., Ezzel, J. R., & Miles, J. A. (1995). Bank CEO pay-performance relations and the effects of deregulation. Journal of Business, 68, 231–256. Crespí, R., García-Cestona, M. A., & Salas, V. (2004). Governance mechanisms in Spanish banks: Does ownership matter? Journal of Banking and Finance, 28, 2311–2330. Demsetz, R., Saidenberg, M., & Strahan, P. (1997). Agency problems and risk taking at banks. Staff Reports: Federal Reserve Bank of New York. Demsetz, R., & Strahan, P. (1997). Size, diversification and risk at U.S. banking companies. Journal of Money, Credit and Banking, 29, 300–313. Esty, B. C. (1997). Organizational form and risk taking in the savings and loan industry. Journal of Financial Economics, 44, 25–44. Fama, E. F., & Jensen, M. C. (1983). Agency problems and residual claims. Journal of Law and Economics, 28, 327–349. Galloway, T. M., Lee, W. B., & Roden, D. M. (1997). Banks’ changing incentives and opportunities for risk-taking. Journal of Banking and Finance, 21, 509–527. García-Cestona, M. A. & Surroca, J. (2005). Multiple goals and ownership structure. Effects on the Performance of Spanish Savings Banks. DTEA0405, U. Salamanca. García-Marco, T., & Robles Fernández, M. D. (2003). Determinantes del Risk Taking en las entidades financieras españolas ¿estructura de la propiedad o tamaño?. Revista de Economía Financiera, 1, 37–61. Gorton, G., & Rosen, R. (1995). Corporate control, portfolio choice, and the decline of banking. Journal of Finance, 50, 1377–1420. Grifell-Tatje, E., & Lovell, C. (1997). The sources of productivity change in Spanish banking. ´ European Journal of Operational Research, 98, 364–380. Hannan, T., & Hanweck, G. A. (1988). Bank insolvency risk and the market for large certificates of deposit. Journal of Money, Credit and Banking, 20(2), 203–211. Hasan, I., & Lozano, A. (2002). Organizational form and expense preference: Spanish experience.Bulletin of Economics Research, 18(1), 59–78. Houston, J. F., & James, C. (1995). CEO compensation and bank risk. Is compensation in banking structured to promote risk taking? Journal of Monetary Economics, 36, 405–431. Kane, E. J. (1988). The S&L insurance mess: How did it happen? Washington, DC: The Urban Institute Press. Karels, G. V., & McClatchey, C. (1999). Deposit insurance and risk-taking behavior in the Credit Union Industry. Journal of Banking and Finance, 23, 105–134. Keeley, M. C. (1990). Deposit insurance, risk and market power in banking.American Economic Review,80(5), 1183–1200. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). Government ownership of banks. Journal of Finance, 57, 265–301. Lamm-Tennan, J., & Starks, L. T. (1993). Stock versus mutual ownership structures: The risk implications. Journal of Business, 66(1), 29–46. Lozano, A. (1998). Efficiency and technical change for Spanish banks. Applied Financial Economics, 8, 289–300. Marcus, A. J. (1984). Deregulation and bank financial policy. Journal of Banking and Finance, 8, 557–565. Masulis, R. W. (1987). Changes in ownership structure: Conversions of mutual savings and loans to stock charter. Journal of Financial Economics, 18, 29–59. Merton, R. C. (1977). Analytic derivation of the cost of deposit insurance and loan guarantees. Journal of Banking and Finance, 1(1), 3–11. Nash, R. C., & Sinkey, J. F. (1997). On competition, risk, and hidden assets in the market for bank credit cards. Journal of Banking and Finance, 21(1), 89–112. Prowse, S. D. (1995). Alternative methods of corporate control in commercial banks. Federal Reserve Bank of Dallas Economic Review, (third quarter), 24–36. Rasmussen, E. (1988). Mutual banks and stock banks. Journal of Law and Economics, 31, 395–421. Salas, V., & Saurina, J. (2002). Credit risk in two institutional regimes: Spanish Commercial and Savings banks. Journal of Financial Service, 22(3), 203–224. Saunders, A., Strock, E., & Travlos, N. G. (1990). Ownership structure, deregulation, and bank risk taking. Journal of Finance, 45(2), 643–654. Verbrugge, J. E., & Goldstein, S. J. (1981). Risk-return and managerial objectives: Some evidence from the savings and loan industry. Journal of Financial Research, 4, 45–58. | |
| dspace.entity.type | Publication | |
| relation.isAuthorOfPublication | fac00adf-67d0-467f-a944-c3830f5ddb54 | |
| relation.isAuthorOfPublication.latestForDiscovery | fac00adf-67d0-467f-a944-c3830f5ddb54 |
Download
Original bundle
1 - 1 of 1
