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Brossard, Olivier
and Auvray, Tristan
(2012)
"Too dispersed to monitor? Ownership dispersion, monitoring and the prediction of bank distress".
Journal of Money, Credit and Banking, 44 (4).
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Abstract
This paper conducts an empirical assessment of the theories stating that ownership concentration improves the quality of shareholders' monitoring. In contrast with other studies, we do not use regressions of risk/performance on ownership concentration. Instead, we build an early warning model of bank distress that includes a leading indicator derived from banks' share price, the Merton-KMV distance to default (DD). The significance of this indicator depends on the efficacy of shareholders' monitoring. On a sample of European banks, we show that the predictive power of the DD is satisfactory only when banks' shareholding is characterized by the presence of blockholders.
| Item Type: | Article |
|---|---|
| Language: | English |
| Date: | June 2012 |
| Refereed: | Yes |
| Uncontrolled Keywords: | Monitoring, Ownership concentration, Block ownership, Bank distress, Early warning models |
| Subjects: | B- ECONOMIE ET FINANCE > B5- Finances |
| Divisions: | Laboratoire d'Études et de Recherches sur l'Économie, les Politiques et les Systèmes sociaux (Toulouse) |
| Ecole doctorale: | École doctorale Temps, Espaces, Sociétés, Cultures (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 08 Jun 2012 13:26 |
| Last Modified: | 02 Apr 2021 15:38 |
| URI: | https://publications.ut-capitole.fr/id/eprint/5909 |
Available Versions of this Item
- "Too dispersed to monitor? Ownership dispersion, monitoring and the prediction of bank distress". (deposited 08 Jun 2012 13:26) [Currently Displayed]
