Risk governance of financial institutions: The effect of ownership structure and board independence
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Publication type
Journal article with impact factorPublication Year
2019Journal
Finance Research LettersPublication Volume
28Publication Issue
MarchPublication Begin page
227Publication End page
237
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This paper investigates how the risk governance practices of European financial institutions quantitatively cluster on the corporate governance characteristics of the corporation, particularly ownership structure and board independence. Using hand-collected data on a sample of 54 banks and 33 insurance companies, we find that financial institutions with powerful owners (i.e., those with >20% ownership) have a lower chief risk officer (CRO) presence and lower risk committee presence. In addition, state-controlled institutions and institutions with more independent boards have more independent risk committees.Knowledge Domain/Industry
Accounting & Financeae974a485f413a2113503eed53cd6c53
10.1016/j.frl.2018.05.001