Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership

The authors jointly analyze the static, selection, and dynamic effects of domestic, foreign, and state ownership on bank performance. They argue that it is important to include indicators of all the relevant governance effects in the same model. "Nonrobustness" checks (which purposely excl...

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Main Authors:	Berger, Allen N., Clarke, George R. G., Cull, Robert, Klapper, Leora, Udell, Gregory F.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AFFILIATES BALANCE SHEETS BANK ASSETS BANK DEPOSITS BANK LENDING BANK MANAGEMENT BANK MERGERS BANK PERFORMANCE BANK PORTFOLIOS BANK PRIVATIZATION BANK SIZE BANK SUPERVISION BANKING CRISIS BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL ADEQUACY CAPITAL MARKETS CENTRAL BANK COMMERCIAL BANK DEPOSITS COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE DEBT DEPOSITORS DEREGULATION ECONOMIC GROWTH EQUITY CAPITAL FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL ASSISTANCE FINANCIAL CRISES FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL SYSTEM FOREIGN BANKS FOREIGN ENTRY FOREIGN OWNERSHIP GLOBALIZATION GOVERNANCE INDICATORS GOVERNMENT AUTHORITIES GOVERNMENT POLICIES GUIDELINES INSOLVENCY LATIN AMERICAN LEGISLATION LIQUIDATION LIQUIDITY MIGRATION MORTGAGES NATIONS NONPERFORMING LOANS PRIVATIZATION PRIVATIZATION OF STATE PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION RETURN ON EQUITY SAVINGS SECURITIES SHAREHOLDERS SHORT-TERM DEBT SMALL BANKS STATE OWNERSHIP VOTING WESTERN EUROPE
Online Access:	http://documents.worldbank.org/curated/en/2005/06/5860561/corporate-governance-bank-performance-joint-analysis-static-selection-dynamic-effects-domestic-foreign-state-ownership http://hdl.handle.net/10986/8229

id	okr-10986-8229
recordtype	oai_dc
spelling	okr-10986-82292021-04-23T14:02:42Z Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership Berger, Allen N. Clarke, George R. G. Cull, Robert Klapper, Leora Udell, Gregory F. AFFILIATES BALANCE SHEETS BANK ASSETS BANK DEPOSITS BANK LENDING BANK MANAGEMENT BANK MERGERS BANK PERFORMANCE BANK PORTFOLIOS BANK PRIVATIZATION BANK SIZE BANK SUPERVISION BANKING CRISIS BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL ADEQUACY CAPITAL MARKETS CENTRAL BANK COMMERCIAL BANK DEPOSITS COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE DEBT DEPOSITORS DEREGULATION ECONOMIC GROWTH EQUITY CAPITAL FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL ASSISTANCE FINANCIAL CRISES FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL SYSTEM FOREIGN BANKS FOREIGN ENTRY FOREIGN OWNERSHIP GLOBALIZATION GOVERNANCE INDICATORS GOVERNMENT AUTHORITIES GOVERNMENT POLICIES GUIDELINES INSOLVENCY LATIN AMERICAN LEGISLATION LIQUIDATION LIQUIDITY MIGRATION MORTGAGES NATIONS NONPERFORMING LOANS PRIVATIZATION PRIVATIZATION OF STATE PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION RETURN ON EQUITY SAVINGS SECURITIES SHAREHOLDERS SHORT-TERM DEBT SMALL BANKS STATE OWNERSHIP VOTING WESTERN EUROPE The authors jointly analyze the static, selection, and dynamic effects of domestic, foreign, and state ownership on bank performance. They argue that it is important to include indicators of all the relevant governance effects in the same model. "Nonrobustness" checks (which purposely exclude some indicators) support this argument. Using data from Argentina in the 1990s, their strongest and most robust results concern state ownership. State-owned banks have poor long-term performance (static effect), those undergoing privatization had particularly poor performance beforehand (selection effect), and these banks dramatically improved following privatization (dynamic effect. However, much of the measured improvement is likely due to placing nonperforming loans into residual entities, leaving "good" privatized banks. 2012-06-15T22:19:53Z 2012-06-15T22:19:53Z 2005-06 http://documents.worldbank.org/curated/en/2005/06/5860561/corporate-governance-bank-performance-joint-analysis-static-selection-dynamic-effects-domestic-foreign-state-ownership http://hdl.handle.net/10986/8229 English Policy, Research working paper ; no. 3632 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AFFILIATES BALANCE SHEETS BANK ASSETS BANK DEPOSITS BANK LENDING BANK MANAGEMENT BANK MERGERS BANK PERFORMANCE BANK PORTFOLIOS BANK PRIVATIZATION BANK SIZE BANK SUPERVISION BANKING CRISIS BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL ADEQUACY CAPITAL MARKETS CENTRAL BANK COMMERCIAL BANK DEPOSITS COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE DEBT DEPOSITORS DEREGULATION ECONOMIC GROWTH EQUITY CAPITAL FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL ASSISTANCE FINANCIAL CRISES FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL SYSTEM FOREIGN BANKS FOREIGN ENTRY FOREIGN OWNERSHIP GLOBALIZATION GOVERNANCE INDICATORS GOVERNMENT AUTHORITIES GOVERNMENT POLICIES GUIDELINES INSOLVENCY LATIN AMERICAN LEGISLATION LIQUIDATION LIQUIDITY MIGRATION MORTGAGES NATIONS NONPERFORMING LOANS PRIVATIZATION PRIVATIZATION OF STATE PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION RETURN ON EQUITY SAVINGS SECURITIES SHAREHOLDERS SHORT-TERM DEBT SMALL BANKS STATE OWNERSHIP VOTING WESTERN EUROPE
spellingShingle	AFFILIATES BALANCE SHEETS BANK ASSETS BANK DEPOSITS BANK LENDING BANK MANAGEMENT BANK MERGERS BANK PERFORMANCE BANK PORTFOLIOS BANK PRIVATIZATION BANK SIZE BANK SUPERVISION BANKING CRISIS BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL ADEQUACY CAPITAL MARKETS CENTRAL BANK COMMERCIAL BANK DEPOSITS COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE DEBT DEPOSITORS DEREGULATION ECONOMIC GROWTH EQUITY CAPITAL FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL ASSISTANCE FINANCIAL CRISES FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL SYSTEM FOREIGN BANKS FOREIGN ENTRY FOREIGN OWNERSHIP GLOBALIZATION GOVERNANCE INDICATORS GOVERNMENT AUTHORITIES GOVERNMENT POLICIES GUIDELINES INSOLVENCY LATIN AMERICAN LEGISLATION LIQUIDATION LIQUIDITY MIGRATION MORTGAGES NATIONS NONPERFORMING LOANS PRIVATIZATION PRIVATIZATION OF STATE PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION RETURN ON EQUITY SAVINGS SECURITIES SHAREHOLDERS SHORT-TERM DEBT SMALL BANKS STATE OWNERSHIP VOTING WESTERN EUROPE Berger, Allen N. Clarke, George R. G. Cull, Robert Klapper, Leora Udell, Gregory F. Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership
geographic_facet	Latin America & Caribbean
relation	Policy, Research working paper ; no. 3632
description	The authors jointly analyze the static, selection, and dynamic effects of domestic, foreign, and state ownership on bank performance. They argue that it is important to include indicators of all the relevant governance effects in the same model. "Nonrobustness" checks (which purposely exclude some indicators) support this argument. Using data from Argentina in the 1990s, their strongest and most robust results concern state ownership. State-owned banks have poor long-term performance (static effect), those undergoing privatization had particularly poor performance beforehand (selection effect), and these banks dramatically improved following privatization (dynamic effect. However, much of the measured improvement is likely due to placing nonperforming loans into residual entities, leaving "good" privatized banks.
format	Publications & Research :: Policy Research Working Paper
author	Berger, Allen N. Clarke, George R. G. Cull, Robert Klapper, Leora Udell, Gregory F.
author_facet	Berger, Allen N. Clarke, George R. G. Cull, Robert Klapper, Leora Udell, Gregory F.
author_sort	Berger, Allen N.
title	Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership
title_short	Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership
title_full	Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership
title_fullStr	Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership
title_full_unstemmed	Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership
title_sort	corporate governance and bank performance : a joint analysis of the static, selection, and dynamic effects of domestic, foreign, and state ownership
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/06/5860561/corporate-governance-bank-performance-joint-analysis-static-selection-dynamic-effects-domestic-foreign-state-ownership http://hdl.handle.net/10986/8229
_version_	1764407563080695808

Corporate Governance and Bank Performance : A Joint Analysis of the Static, Selection, and Dynamic Effects of Domestic, Foreign, and State Ownership

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