Governance and Bank Valuation

Caprio, Gerard ; Laeven, Luc ; Levine, Ross

World Bank, Washington, D.C.

关键词: BANKING;    CORPORATE GOVERNANCE;    SECURITIES LAW;    SUPERVISION;    REGULATION;   

DOI  :  10.1596/1813-9450-3202
RP-ID  :  WPS3202

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Which public policies and ownershipstructures enhance the governance of banks? The authorsconstruct a new database on the ownership of banksinternationally and then assess the ramifications ofownership, shareholder protection laws, and supervisory andregulatory policies on bank valuations. Except in a fewcountries with very strong shareholder protection laws,banks are not widely held, but rather families or the statetend to control banks. The authors find that: (i) Largercash flow rights by the controlling owner boosts valuations;(ii) Stronger shareholder protection laws increasevaluations; and (iii) Greater cash flow rights mitigate theadverse effects of weak shareholder protection laws on bankvaluations.These results are consistent with the viewsthat expropriation of minority shareholders is importantinternationally, that laws can restrain this expropriation,and concentrated cash flow rights represent an importantmechanism for governing banks. Finally, the evidence doesnot support the view that empowering official supervisoryand regulatory agencies will increase the market valuationof banks.