| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 10488014 | Journal of Financial Stability | 2013 | 12 Pages |
Abstract
⺠It is in the interests of bank shareholders to risk shift. ⺠Bank shareholders design CEO compensation contracts with excessive risk taking incentives. ⺠With appropriate constraints on the compensation base and on the structure of compensation of bank CEOs, shareholders design an efficient contract. ⺠If the regulator can credibly commit to punish the CEOs of failed banks, shareholders design an efficient contract.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics, Econometrics and Finance (General)
Authors
Pierre Chaigneau,