RISK‐TAKING BEHAVIOR AND MANAGEMENT OWNERSHIP IN DEPOSITORY INSTITUTIONS

RISK‐TAKING BEHAVIOR AND MANAGEMENT OWNERSHIP IN DEPOSITORY INSTITUTIONS

We examine the relation between risk and ownership structure among depository institutions. The empirical results provide evidence that the relation between managerial ownership and depository institution risk is negative and significant, suggesting that as managerial ownership increases the level o...

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Veröffentlicht in:The Journal of financial research 1998-04, Vol.21 (1), p.1-16
Hauptverfasser: Chen, Carl R., Steiner, Thomas L., Whyte, Ann Marie
Format: Artikel
Sprache:eng
Schlagworte:
Bank holding companies
Banking industry
Commercial banks
Compensation
Deposit insurance
Depository Institutions Deregulation & Monetary Control Act 1980-US
Economic models
Equity
Financial institutions
Hedging
Hypotheses
Insolvency
Interest rates
Ownership
Put & call options
Risk aversion
Risk exposure
Statistical analysis
Stock exchanges
Stockholders
Studies
Volatility
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Zusammenfassung:We examine the relation between risk and ownership structure among depository institutions. The empirical results provide evidence that the relation between managerial ownership and depository institution risk is negative and significant, suggesting that as managerial ownership increases the level of risk‐taking decreases. This finding, which supports a risk aversion hypothesis, is consistent across several market‐based risk measures. Furthermore, we document greater risk and greater risk aversion for savings institutions relative to commercial banks.
ISSN:0270-2592
1475-6803
DOI:10.1111/j.1475-6803.1998.tb00266.x