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Analyzing the governance structure of French banking groups

Author

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  • Ben Bouheni, Faten
  • Idi Cheffou, Abdoulkarim
  • Jawadi, Fredj

Abstract

We analyze the governance structure of three main French banking groups (BNP Paribas, Crédit Agricole, and Société Générale) in the context of the global financial crisis. To this end, We, first, show the heterogeneity within the ownership structures of these three banks, which points differences with regard to performance among these banks. Second, we underscore the importance of institutional investors in stimulating banking growth. Finally, we note that the high number of independent directors on the boards of directors of BNP Paribas and Société Générale as well as the use of incentive pay in executive compensation might explain the excess risk taking of these banks.

Suggested Citation

  • Ben Bouheni, Faten & Idi Cheffou, Abdoulkarim & Jawadi, Fredj, 2018. "Analyzing the governance structure of French banking groups," Research in International Business and Finance, Elsevier, vol. 44(C), pages 40-48.
  • Handle: RePEc:eee:riibaf:v:44:y:2018:i:c:p:40-48
    DOI: 10.1016/j.ribaf.2017.05.016
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    References listed on IDEAS

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    More about this item

    Keywords

    Board of directors; Ownership structure; Incentive pay; Bank; Financial crisis;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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