Bank Governance Structures and Risk Taking

by Dennis Froneberg (Author)
©2016 Thesis 216 Pages


The book sheds light on two closely related and highly relevant governance themes: the composition of supervisory boards and financial expertise as well as ownership structure. The author focuses on the financial expertise of supervisory boards and its impact on performance and risk. He analyses how supervisory boards are composed and how much financial expertise their members have, assesses the impact of financial expertise on a banks’ risk-return profiles and investigates if financial expertise in internal bank governance contributes to more stability and less risk taking in banking. Finally, he examines the effects of the ownership structure on credit risk. He finds that banks with a more concentrated ownership structure tend to behave riskier, which is indicated by larger CDS spreads.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the author(s)/editor(s)
  • About the book
  • This eBook can be cited
  • Table of Contents
  • List of Tables
  • List of Abbreviations
  • List of Symbols
  • I Introduction
  • II The Manifest Financial Expertise of Supervisory Board Members of German Regional Banks
  • II.1 Introduction
  • II.2 Introduction to German Banking Sector and Legal Backdrop
  • II.3 Research Methodology
  • II.4 Data set
  • II.5 Empirical Analysis
  • II.6 Concluding Remarks
  • II.7 Appendix
  • III Impact of Supervisory Board Members’ Professional Background on Regional Banks’ Risk-Taking
  • III.1 Introduction
  • III.2 Related Literature
  • III.3 Data and Methodology
  • III.3.1 Sample and Data
  • III.3.2 Hypotheses and Model
  • III.3.3 Financial Expertise
  • III.3.4 Measurement of Performance and Risk
  • III.3.5 Control Variables
  • III.4 Results
  • III.4.1 Summary Statistics
  • III.4.2 Regression Results
  • III.4.3 Robustness Checks
  • III.5 Concluding Remarks
  • III.6 Appendix
  • IV Bank Governance Structures, Financial Expertise of Supervisory Board Members, Overconfidence, and Bank Risk Taking
  • IV.1 Introduction
  • IV.2 Literature Review
  • IV.3 Data set and Methodology
  • IV.3.1 Sample and Data set
  • IV.3.2 Hypotheses and Model
  • IV.3.3 Financial Expertise
  • IV.3.4 Measurement of Risk and Return
  • IV.3.5 Control Variables
  • IV.4 Results
  • IV.4.1 Summary Statistics
  • IV.4.2 Regression Results
  • IV.4.3 Robustness Checks
  • IV.5 Concluding Remarks
  • IV.6 Appendix
  • V CDS and Bank Ownership Structures: Does the Credit Side Show Who Advocates More Risk?
  • V.1 Introduction
  • V.2 Related Literature
  • V.3 Data and Methodology
  • V.3.1 Sample and Data
  • V.3.2 Ownership Concentration
  • V.3.3 Measurement of Credit Risk
  • V.3.4 Control Variables
  • V.3.5 Model
  • V.4 Results
  • V.4.1 Summary Statistics
  • V.4.2 Regression Results
  • V.5 Concluding Remarks
  • V.6 Appendix
  • VI Main Concluding Remarks
  • References

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List of Tables


ISBN (Softcover)
Publication date
2015 (November)
Financial Expertise Overconfidence Cooperative Bank Savings Banks Ownership Concentration
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2015. 216 pp., 36 tables

Biographical notes

Dennis Froneberg (Author)

Dennis Froneberg studied Business Administration with a focus on corporate finance and risk management at the University of Mannheim. He works as a manager at a global insurance company in Frankfurt.


Title: Bank Governance Structures and Risk Taking