English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Zendy Plus

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Zendy Tools

Zendy Open

In this paper we analyse whether bank owners or bank managers were the driving force behind the risks incurred in the wake of the financial crisis of 2007/2008. We show that owner controlled banks had higher profits in the years before the crisis and incurred larger losses during the crisis compared to manager-controlled banks. The results are robust to controlling for a wide variety of regulatory and legal variables. The push to take risks came from the owners of banks and not from the managers. We find some weak evidence that better regulation mitigates the effect of risk taking by bank owners. The results suggest that tying bank manager's salaries more closely to long term share performance may not reduce risk taking by banks.

Bank Owners or Bank Managers: Who is Keen on Risk? Evidence from the Financial Crisis