Incentive-Based Capital Requirements

Published Online:https://doi.org/10.1287/mnsc.2016.2549

References

  • Acharya VV, Richardson M (2009) Restoring Financial Stability: How to Repair a Failed System (John Wiley & Sons, Hoboken, NJ).CrossrefGoogle Scholar
  • Adams RB (2012) Governance and the financial crisis. Internat. Rev. Finance 12(1):7–38.CrossrefGoogle Scholar
  • Admati A, Hellwig M (2014) The Bankers’ New Clothes: What’s Wrong with Banking and What to Do About It (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Admati AR, Hellwig MF (2015) The parade of the bankers’ new clothes continues: 31 flawed claims debunked. Working paper, Stanford University, Stanford, CA.Google Scholar
  • Admati A, Allen F, Brealey R, Brennan M, Boot A, Brunnermeier M, Cochrane Jet al. (2010) Healthy banking system is the goal, not profitable banks. Financial Times (November 9), http://www.ft.com/cms/s/0/63fa6b9e-eb8e-11df-bbb5-00144feab49a.html.Google Scholar
  • Ang J, Lauterbach B, Schreiber BZ (2002) Pay at the executive suite: How do US banks compensate their top management teams? J. Banking Finance 26(6):1143–1163.CrossrefGoogle Scholar
  • Bebchuk LA, Spamann H (2010) Regulating bankers’ pay. Georgetown Law J. 98(2):247–287.Google Scholar
  • Bebchuk LA, Cohen A, Spamann H (2010) The wages of failure: Executive compensation at Bear Stearns and Lehman 2000–2008. Yale J. Regulation 27(2):257–282.Google Scholar
  • Behn M, Haselmann R, Vig V (2014) The limits of model-based regulation. Working paper, London Business School, London.CrossrefGoogle Scholar
  • Berlin M, Mester LJ (1992) Debt covenants and renegotiation. J. Financial Intermediation 2(2):95–133.CrossrefGoogle Scholar
  • Bolton P, Mehran H, Shapiro J (2015) Executive compensation and risk taking. Rev. Finance 19(6):2139–2181.CrossrefGoogle Scholar
  • Calomiris CW, Kahn CM (1991) The role of demandable debt in structuring optimal banking arrangements. Amer. Econom. Rev. 81(3):497–513.Google Scholar
  • Chava S, Roberts MR (2008) How does financing impact investment? The role of debt covenants. J. Finance 63(5):2085–2121.CrossrefGoogle Scholar
  • Cheng I-H, Hong H, Scheinkman JA (2015) Yesterday’s heroes: Compensation and risk at financial firms. J. Finance 70(2):839–879.CrossrefGoogle Scholar
  • Chesney M, Stromberg J, Wagner AF (2010) Risk-taking incentives, governance, and losses in the financial crisis. Working paper, Swiss Financial Institute, Zurich.Google Scholar
  • Cochrane JH (2014) Toward a run-free financial system. Working paper, University of Chicago, Chicago.CrossrefGoogle Scholar
  • Danielsson J (2002) The emperor has no clothes: Limits to risk modelling. J. Banking Finance 26(7):1273–1296.CrossrefGoogle Scholar
  • Danielsson J (2008) Blame the models. J. Financial Stability 4(4):321–328.CrossrefGoogle Scholar
  • Demirgüç-Kunt A, Huizinga H (2013) Are banks too big to fail or too big to save? International evidence from equity prices and CDS spreads. J. Banking Finance 37(3):875–894.CrossrefGoogle Scholar
  • Edmans A, Liu Q (2011) Inside debt. Rev. Finance 15(1):75–102.CrossrefGoogle Scholar
  • Fahlenbrach R, Stulz RM (2011) Bank CEO incentives and the credit crisis. J. Financial Econom. 99(1):11–26.CrossrefGoogle Scholar
  • Ferreira D, Kershaw D, Kirchmaier T, Schuster E (2016) Measuring management insulation from shareholder pressure. Working paper, London School of Economics, London.Google Scholar
  • Financial Stability Board (2009) FSB Principles for Sound Compensation Practices: Implementation Standards 3. http://www.financialstabilityboard.org/publications/r_090925c.pdf.Google Scholar
  • Gorton G, Winton A (2003) Financial intermediation. Constantinides GM, Harris M, Stulz RM, eds. Handbook of the Economics of Finance, Vol. 1 (North-Holland, Amsterdam), 431–552.CrossrefGoogle Scholar
  • Gorton GB, Lewellen S, Metrick A (2012) The safe-asset share. Amer. Econom. Rev. 102(3):101–106.CrossrefGoogle Scholar
  • Gropp R, Koehler M (2010) Bank owners or bank managers: Who is keen on risk? Evidence from the financial crisis. Working paper, Halle Institute for Economic Research, Halle, Germany.Google Scholar
  • Hakenes H, Schnabel I (2014) Bank bonuses and bailouts. J. Money, Credit Banking 46(s1):259–288.CrossrefGoogle Scholar
  • Hellwig MF (2010) Capital regulation after the crisis: Business as usual? MPI Collective Goods Preprint 2010/31, Max Planck Institute for Research on Collective Goods, Bonn, Germany.Google Scholar
  • Inderst R, Mueller HM (2006) Informed lending and security design. J. Finance 61(5):2137–2162.CrossrefGoogle Scholar
  • Inderst R, Mueller HM (2008) Bank capital structure and credit decisions. J. Financial Intermediation 17(3):295–314.CrossrefGoogle Scholar
  • Jensen MC, Meckling WH (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. 3(4):305–360.CrossrefGoogle Scholar
  • John TA, John K (1993) Top-management compensation and capital structure. J. Finance 48(3):949–74.CrossrefGoogle Scholar
  • John K, Saunders A, Senbet LW (2000) A theory of bank regulation and management compensation. Rev. Financial Stud. 13(1):95–125.CrossrefGoogle Scholar
  • Kashyap AK, Rajan RG, Stein JC (2008) Rethinking capital regulation. Working paper, Federal Reserve Bank of Kansas City, Kansas City, MO.Google Scholar
  • Krishnamurthy A, Vissing-Jorgensen A (2013) Short-term debt and financial crises: What we can learn from U.S. Treasury supply. Working paper, Northwestern University, Evanston, IL.Google Scholar
  • Laeven L, Levine R (2009) Bank governance, regulation and risk taking. J. Financial Econom. 93(2):259–275.CrossrefGoogle Scholar
  • Myerson RB (2014) Rethinking the principles of bank regulation: A review of Admati and Hellwig’s the bankers’ new clothes. J. Econom. Literature 52(1):197–210.CrossrefGoogle Scholar
  • O’Donnell S, Rodda D (2015) Executive compensation in the banking industry: Emerging trends and best practices for 2014–2015. White paper, Meridian, Chicago.Google Scholar
  • Rajan U, Seru A, Vig V (2015) The failure of models that predict failure: Distance, incentives, and defaults. J. Financial Econom. 115(2):237–260.CrossrefGoogle Scholar
  • Thanassoulis J (2012) The case for intervening in bankers’ pay. J. Finance 67(3):849–895.CrossrefGoogle Scholar
  • Thanassoulis JE, Tanaka M (2015) Bankers’ pay and excessive risk. Staff Working Paper 558, Bank of England, London.Google Scholar
  • Westman H (2010) The role of ownership structure and regulatory environment in bank corporate governance. Working paper, Finnish Financial Stability Authority, Helsinki, Finland.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.