Advanced Search
MyIDEAS: Login to save this article or follow this journal

Compensation Of The Ceo, Board Of Directors And Bank Risk Taking

Contents:

Author Info

  • Nesrine Ayadi

    ()
    (University of Sfax Faculty of Economics and Management of Sfax, Tunisia)

  • Younès Boujèlbène

    (University of Sfax Faculty of Economics and Management of Sfax, Tunisia)

Abstract

This article aims to study the effects of the attributes of the Board of Directors and the remuneration of the leader in charge of risk-taking from thirty European commercial banks. This research uses a technique of static panel data over the period of 2004-2009. The results of our study suggest that the relationship between the remuneration of the leader and the risk of insolvency is statistically negative. Similarly, our results show that accumulating the functions of the CEO and the chairman of the board of directors negatively affects the risk of insolvency. They also indicate that there is a negative correlation between the frequency of the board directors' meetings and the insolvency risk. This study gives an overview about the fact that both the Board of Directors and the remuneration of the Chief Executive Officer (CEO) have an important and dominant role in controlling the leaders of the European commercial banks. Hence, the control manifested by the Board of Directors has been strengthened by the CEO's compensation which is considered a motivating mechanism of control for the CEO.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.asers.eu/journals/jarm/jarlm-issues.html
Download Restriction: no

Bibliographic Info

Article provided by ASERS Publishing in its journal Journal of Advanced Research in Management.

Volume (Year): III (2012)
Issue (Month): 1 (June)
Pages: 4-16

as in new window
Handle: RePEc:srs:jarm12:1:v:3:y:2012:i:1:p-:4-16

Contact details of provider:
Web page: http://www.asers.eu/journals/jarm.html

Related research

Keywords: board of directors; CEO's remuneration; bank governance; risk of insolvency; European banks.;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:srs:jarm12:1:v:3:y:2012:i:1:p-:4-16. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andy Stefanescu).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.