Corporate Governance and Value of Banks after the Financial Crisis: A European Perspective

Posted: 11 Apr 2014 Last revised: 7 May 2014

See all articles by Barbara Monda

Barbara Monda

RiskGovernance - Politecnico di Milano, Management, Economics and Industrial Engineering Department

Marco Giorgino

Polytechnic University of Milan

Madhu Acharyya

Independent

Date Written: April 9, 2014

Abstract

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

Monda, Barbara and Giorgino, Marco and Acharyya, Madhu, Corporate Governance and Value of Banks after the Financial Crisis: A European Perspective (April 9, 2014). Available at SSRN: https://ssrn.com/abstract=2422909

Barbara Monda (Contact Author)

RiskGovernance - Politecnico di Milano, Management, Economics and Industrial Engineering Department ( email )

Piazza Leonardo da Vinci, 32
Milano, 20133
Italy

HOME PAGE: http://www.risk-governance.eu

Marco Giorgino

Polytechnic University of Milan ( email )

vial Lambruschini 4B
Milan, Milan 20156
Italy

Madhu Acharyya

Independent ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
531
PlumX Metrics