Bangor academic co-authors article selected as one of the best corporate finance papers

The article “Who disciplines bank managers?”, co-authored by Dr Klaus Schaeck from Bangor Business School, is the lead article in a virtual issue of the best corporate governance papers published in the Review of Finance, one of the top five finance journals.

The editors of the Review of Finance selected nine papers by leading authors in corporate governance to increase the readership’s access to these publications.

Dr Schaeck and his co-authors Martin Cihak, Andrea Maechler and Stephanie Stolz investigate in this article the ability of bank depositors, shareholders, and regulators to influence bank risk taking by firing executives. The study shows that executive dismissals occur indeed more often in risky banks, and it is primarily shareholders that initiate the executive turnovers. In a further analysis, the authors show that risk, bank losses, and profitability do not improve following the dismissal of an executive.

The virtual issue is available at this link.

Publication date: 13 January 2012