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The impact of financial development on income inequality: a quantile regression approach

Author

Listed:
  • Yener Altunbaş

    (Bangor University)

  • John Thornton

    (Office of Technical Assistance, US Department of the Treasury
    Bangor University)

  • Yurtsev Uymaz

    (Norwich Business School, University of East Anglia)

Abstract

We test for a link between CEO power and risk taking in US banks. Banks are more likely to take risks if they have powerful CEOs and relatively poor balance sheets. There is little evidence that executive board size and independence have a dampening effect on the channels through which powerful CEOs influence risk-taking and some evidence that institutional investors reinforce the risk-taking preferences of powerful CEOs.

Suggested Citation

  • Yener Altunbaş & John Thornton & Yurtsev Uymaz, 2019. "The impact of financial development on income inequality: a quantile regression approach," Working Papers 19003, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    • Handle: RePEc:bng:wpaper:19003
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Banks; governance; risk; CEO power; boards of directors; institutional investors;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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