Corporate Governance and Value of Banks after the Financial Crisis: A European Perspective
Posted: 11 Apr 2014 Last revised: 7 May 2014
Date Written: April 9, 2014
In this paper we investigate the relationships between the adoption of corporate governance best practices and market value for a sample of listed European banks. For this purpose we design the CGBI©, a Corporate Governance Banking Index to assess the maturity of the governance systems adopted specifically by banks and use it in econometric analysis. Finally, we isolate the corporate governance provisions that are positively and significantly correlated with market value. We conclude with recommendations to banks to implement certain corporate governance provisions to contribute to maximise their market-to-book value.
Keywords: Corporate Governance, Corporate Governance Index, Banks performance, Governance of financial institutions
JEL Classification: G21, G32, G34
Suggested Citation: Suggested Citation