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Large shareholders and market discipline in a regulated industry: a clinical study of Mellon Bank

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  • Joseph G. Haubrich
  • James B. Thomson

Abstract

An analysis of the 1987 change in control at Mellon, which was one of only a few banks with a large shareholder. It finds that the large shareholder did not monitor the firm extensively before it experienced performance difficulties, but was able to enforce a management change when problems arose without having to acquire a majority stake.

Suggested Citation

  • Joseph G. Haubrich & James B. Thomson, 1998. "Large shareholders and market discipline in a regulated industry: a clinical study of Mellon Bank," Working Papers (Old Series) 9803, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9803
    DOI: 10.26509/frbc-wp-199803
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    References listed on IDEAS

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    1. Shleifer, Andrei & Vishny, Robert W, 1986. "Large Shareholders and Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 461-488, June.
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    8. Stephen D. Prowse, 1995. "Alternative methods of corporate control in commercial banks," Working Papers 9507, Federal Reserve Bank of Dallas.
    9. Thomson, James B, 1987. "The Use of Market Information in Pricing Deposit Insurance," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 19(4), pages 528-537, November.
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    Cited by:

    1. Selçuk Caner & Süheyla Özyıldırım & A. Ungan, 2012. "How Sensitive Are Bank Managers to Shareholder Value?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 42(3), pages 187-205, December.

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    Keywords

    Stockholders; Mellon Bank;

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