TY - UNPB
T1 - Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency
T2 - Pre- and Post-Crisis Evidence from Turkey
AU - De Jonghe, O.G.
AU - Disli, M.
AU - Schoors, K.
N1 - Subsequently published in the Journal of Financial Services Research (2012). This is also EBC Discussion Paper 2011-035
Pagination: 54
PY - 2011
Y1 - 2011
N2 - Does better corporate governance unambiguously improve the risk/return efficiency of banks? Or does either a re-orientation of banks' revenue mix towards more opaque products, an economic downturn, or tighter supervision create off-setting or reinforcing effects? The authors relate bank efficiency to shortfalls from a stochastic risk/return frontier. They analyze how internal governance mechanisms (CEO duality, board experience, political connections, and education profile) and external governance mechanisms (discipline exerted by shareholders, depositors, or skilled employees) determine efficiency in a sample of Turkish banks. The 2000 financial crisis was a wakeup call for bank efficiency and corporate governance. As a result, better corporate governance mechanisms have been able to improve risk/return efficiency when the economic, regulatory, and supervisory environments are more stable and bank products are more complex.
AB - Does better corporate governance unambiguously improve the risk/return efficiency of banks? Or does either a re-orientation of banks' revenue mix towards more opaque products, an economic downturn, or tighter supervision create off-setting or reinforcing effects? The authors relate bank efficiency to shortfalls from a stochastic risk/return frontier. They analyze how internal governance mechanisms (CEO duality, board experience, political connections, and education profile) and external governance mechanisms (discipline exerted by shareholders, depositors, or skilled employees) determine efficiency in a sample of Turkish banks. The 2000 financial crisis was a wakeup call for bank efficiency and corporate governance. As a result, better corporate governance mechanisms have been able to improve risk/return efficiency when the economic, regulatory, and supervisory environments are more stable and bank products are more complex.
KW - corporate governance
KW - bank risk
KW - noninterest income
KW - crisis
KW - frontier
M3 - Discussion paper
VL - 2011-129
T3 - CentER Discussion Paper
BT - Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency
PB - Finance
CY - Tilburg
ER -