Institutional Ownership and Tail Risk Comovement in Banks

References

• Acharya VV, Pedersen LH, Philippon T, Richardson M (2017) Measuring systemic risk. Rev. Financial Stud. 30(1):2–47.Crossref, Google Scholar
• Adrian T, Brunnermeier M (2016) CoVaR. Amer. Econom. Rev. 106(7):1705–1741.Crossref, Google Scholar
• Almazan A, Hartzell JC, Starks LT (2008) Active institutional shareholders and costs of monitoring: Evidence from executive compensation. Financial Management 34(4):5–34.Crossref, Google Scholar
• Anadu K, Kruttli M, McCabe P, Osambela E (2020) The shift from active to passive investing: Potential risks to financial stability? Working paper, Federal Reserve Board, Washington, DC.Google Scholar
• Anton M, Polk C (2014) Connected stocks. J. Finance 69(3):1099–1127.Crossref, Google Scholar
• Appel I, Gormley T, Keim D (2016) Passive investors, not passive owners. J. Financial Econom. 121(1):111–141.Crossref, Google Scholar
• Bank for International Settlements (2015) Revised Pillar 3 disclosure requirements. Basel Committee on Banking Supervision. http://www.bis.org/bcbs/publ/d309.htm.Google Scholar
• Barber BM, Odean T (2008) All that glitters: The effect of attention and news on the buying behavior of individual and institutional investors. Rev. Financial Stud. 21(2):785–818.Crossref, Google Scholar
• Barberis N, Shleifer A (2003) Style investing. J. Financial Econom. 68(2):161–199.Crossref, Google Scholar
• Beatty A, Liao S (2011) Do delays in expected loss recognition affect banks’ willingness to lend? J. Accounting Econom. 52(1):1–20.Crossref, Google Scholar
• Bennet JA, Sias RW, Starks LT (2003) Greener pastures and the impact of dynamic institutional preferences. Rev. Financial Stud. 16(4):1203–1238.Crossref, Google Scholar
• Bhat G, Desai HA (2020) Bank capital and loan monitoring. Accounting Rev. 95(3):85–114.Crossref, Google Scholar
• Bhat G, Lee JA, Ryan SG (2021) Using loan loss indicators by loan type to sharpen the evaluation of banks’ loan loss accruals. Accounting Horizons 35(3):69–91.Crossref, Google Scholar
• Bisias D, Flood M, Lo A, Valavanis S (2012) A survey of systemic risk analytics. Working paper, Office of Financial Research, Washington, DC.Google Scholar
• Boyson N, Stahel C, Stulz R (2010) Hedge fund contagion and liquidity shocks. J. Finance 65(5):1789–1816.Crossref, Google Scholar
• Brunnermeier MK, Oehmke M (2014) Predatory short selling. Rev. Finance 18(6):2153–2195.Crossref, Google Scholar
• Brunnermeier MK, Pedersen LH (2009) Market liquidity and funding liquidity. Rev. Financial Stud. 22(6):2201–2238.Crossref, Google Scholar
• Brunnermeier MK, Gorton G, Krishnamurthy A (2013) Liquidity mismatch. Risk Topography: Systemic Risk and Macro Modeling (University of Chicago Press, Chicago).Google Scholar
• Bushee B (1998) The influence of institutional investors on myopic R&D investment behavior. Accounting Rev. 73(3):305–333.Crossref, Google Scholar
• Bushee B, Miller G (2012) Investor relations, firm visibility, and investor following. Accounting Rev. 87(3):867–897.Crossref, Google Scholar
• Bushee B, Noe C (2000) Corporate disclosure practices, institutional investors, and stock return volatility. J. Accounting Res. 38:171–202.Crossref, Google Scholar
• Bushee B, Carter M, Gerakos J (2014) Institutional investor preferences for corporate governance mechanisms. J. Management Accounting Res. 26(2):123–149.Crossref, Google Scholar
• Bushman RM, Williams CD (2015) Delayed expected loss recognition and the risk profile of banks. J. Accounting Res. 53(3):511–554.Crossref, Google Scholar
• Bushman RM, Chen JV, Williams CD (2020) Informativeness and timeliness of 10-K text similarity for predicting tail-risk comovement. Working paper, University of North Carolina-Chapel Hill, Chapel Hill, NC.Google Scholar
• Bushman RM, Hendricks BE, Williams CD (2016) Bank competition: Measurement, decision-making, and risk-taking. J. Accounting Res. 54(3):777–826.Crossref, Google Scholar
• Callen JL, Fang X (2013) Institutional investor stability and crash risk: Monitoring versus short-termism? J. Banking Finance 37(8):3047–3063.Crossref, Google Scholar
• Chen Q, Goldstein I, Jiang W (2010) Payoff complementarities and financial fragility: Evidence from mutual fund outflows. J. Financial Econom. 97(2):239–262.Crossref, Google Scholar
• Chen X, Harford J, Li K (2007) Monitoring: Which institutions matter? J. Financial Econom. 86(2):279–305.Crossref, Google Scholar
• Chung R, Firth M, Kim JB (2002) Institutional monitoring and opportunistic earnings management. J. Corporate Finance 8(1):29–48.Crossref, Google Scholar
• Cohen L, Cornett M, Marcus A, Tehranian H (2014) Bank earnings management and tail risk during the financial crisis. J. Money Credit Banking 46(1):171–197.Crossref, Google Scholar
• Cremers M, Petajisto A (2009) How active is your fund manager? A new measure that predicts performance. Working paper, University of Notre Dame, IN; New York University, NY.Google Scholar
• De Jonghe O (2010) Back to the basics in banking? A micro-analysis of banking system stability. J. Financial Intermediation 19(3):387–417.Crossref, Google Scholar
• Della Croce R, Stewart F, Yermo J (2011) Promoting longer-term investment by institutional investors: Selected issues and policies. OECD J. Financial Market Trends 2011(1):145–164.Crossref, Google Scholar
• Deng S, Elyasiani E, Jia J (2013) Institutional ownership, diversification, and riskiness of bank holding companies. Financial Rev. 48(3):385–415.Crossref, Google Scholar
• Diamond D (1984) Financial intermediation and delegated monitoring. Rev. Econom. Stud. 51(3):393–414.Crossref, Google Scholar
• Diamond DW, Dybvig PH (1983) Bank runs, deposit insurance, and liquidity. J. Political Econom. 91(3):401–419.Crossref, Google Scholar
• European Central Bank (2019) Financial Stability Review. https://www.ecb.europa.eu/press/financial-stability-publications/fsr/html/ecb.fsr201905~266e856634.en.html.Google Scholar
• Ferreira M, Matos P (2008) The colors of investors’ money: The role of institutional investors around the world. J. Financial Econom. 88(3):499–533.Crossref, Google Scholar
• Financial Stability Oversight Council (2012) Implementation of the alternative investment fund managers directive. Financial Services Authority consultation paper. https://www.fca.org.uk/publication/consultation/cp12-32.pdf.Google Scholar
• Flannery M (2001) The faces of market discipline. J. Financial Services Res. 20:107–119.Crossref, Google Scholar
• Flannery M, Kwan S, Nimalendran M (2004) Market evidence on the opaqueness of banking firms’ assets. J. Financial Econom. 71(3):419–460.Crossref, Google Scholar
• Garel A, Petit-Romec A, Vennet R (2022) Institutional shareholders and bank capital. J. Financial Intermediation 50:1–17.Crossref, Google Scholar
• Gaspar J-M, Massa M, Matos P (2005) Shareholder investment horizons and the market for corporate control. J. Financial Econom. 76(1):135–165.Crossref, Google Scholar
• Gaspar J-M, Massa M, Matos P, Patgiri R, Rehman Z (2013) Payout policy choices and shareholder investment horizons. Rev. Finance 17(1):261–320.Crossref, Google Scholar
• Gillan SL, Starks LT (2003) Institutional investors, corporate ownership and corporate governance: Global perspectives. Sun L, ed. Ownership and Governance of Enterprises. Studies in Development Economics and Policy (Palgrave Macmillan, London).Crossref, Google Scholar
• Green C, Hwang B (2009) Price-based return comovement. J. Financial Econom. 93(1):37–50.Crossref, Google Scholar
• Greenwood RM, Thesmar D (2011) Stock price fragility. Working paper, Harvard Business School, Boston.Google Scholar
• Hansen L (2014) Challenges in identifying and measuring systemic risk. Brunnermeier MK, Krishnamurthy A, eds. Risk Topography: Systemic Risk and Macro Modeling (University of Chicago Press, Chicago), 15–30.Google Scholar
• Hansen RG, Lott JR Jr (1996) Externalities and corporate objectives in a world with diversified shareholder/consumers. J. Financial Quant. Anal. 31(1):43–68.Crossref, Google Scholar
• Harford JD (1997) Firm ownership patterns and motives for voluntary pollution control. Managerial Decision Econom. 18(6):421–443.Crossref, Google Scholar
• Hawley J, Williams A (2000) The Rise of Fiduciary Capitalism: How Institutional Investors Can Make Corporate America More Democratic (University of Pennsylvania Press, Philadelphia).Google Scholar
• Hawley J, Williams A (2007) Universal owners: Challenges and opportunities. Corporate Governance Internat. Rev. 15(3):415–420.Crossref, Google Scholar
• Healy PM, Hutton AP, Palepu KG (1999) Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemporary Accounting Res. 16(3):485–520.Crossref, Google Scholar
• International Monetary Fund (2019) Global financial stability report: Lower for longer. (October 16), https://www.imf.org/en/Publications/GFSR/Issues/2019/10/11/Global-Financial-Stability-Report-October-2019-Lower-for-Longer-47080.Google Scholar
• Iselin M, Liao S, Zhang H (2021) Common block ownership in banks and systemic risk. Contemporary Accounting Res. 38(3):2157–2191.Crossref, Google Scholar
• Khan U (2019) Does fair value accounting contribute to systemic risk in the banking industry? Contemporary Accounting Res. 36(4):2588–2609.Crossref, Google Scholar
• Kirk M, Vincent J (2014) Professional investor relations within the firm. Accounting Rev. 89(4):1421–1452.Crossref, Google Scholar
• Knaup M, Wagner W (2012) Forward-looking tail risk exposures at U.S. bank holding companies. J. Financial Services Res. 42:35–54.Crossref, Google Scholar
• Kodres LE, Pritsker M (2002) A rational expectations model of financial contagion. J. Finance 57(2):769–799.Crossref, Google Scholar
• Laeven L, Levine R (2009) Bank governance, regulation and risk taking. J. Financial Econom. 93(2):259–275.Crossref, Google Scholar
• Lambert R, Leuz C, Verrecchia R (2007) Accounting information, disclosure, and the cost of capital. J. Accounting Res. 45(2):385–420.Crossref, Google Scholar
• Manconi A, Massa M, Yasuda A (2012) The role of institutional investors in propagating the crisis of 2007–2008. J. Financial Econom. 104(3):491–518.Crossref, Google Scholar
• Moreolo CM (2020) Asset management faces systemic risk questions. Investment Pensions Eur. Magazine (January), https://www.ipe.com/investment/asset-management-faces-systemic-risk-questions/10042991.article.Google Scholar
• Office of Financial Research (2013) Asset management and financial stability. https://www.financialresearch.gov/reports/2013/09/30/asset-management-and-financial-stability/.Google Scholar
• Pindyck RS, Rotemberg JJ (1993) The comovement of stock prices. Quart. J. Econom. 108(4):1073–1104.Crossref, Google Scholar
• Pinkowitz L (2003) Monitoring by transient investors? Institutions and corporate control. Working paper, Georgetown University, Washington, DC.Google Scholar
• Pirinsky C, Wang Q (2006) Does corporate headquarters location matter for stock returns? J. Finance 61(4):1991–2015.Crossref, Google Scholar
• Roman R (2015) Investor activism effects in banking: Is activism beneficial for bank shareholders, creditors, and the public? Working paper, Federal Reserve Bank of Philadelphia, PA.Google Scholar
• Shleifer A, Vishny R (1986) Large shareholders and corporate control. J. Political Econom. 94(3):461–488.Crossref, Google Scholar
• Shleifer A, Vishny R (1992) Liquidation values and debt capacity: A market equilibrium approach. J. Finance 47(4):1343–1366.Crossref, Google Scholar
• Shleifer A, Vishny R (1997) A survey of corporate governance. J. Finance 52(2):737–783.Crossref, Google Scholar
• Srivastav A, Armitage S, Hagendorff J (2013) CEO inside debt holdings and risk-shifting: Evidence form the dividend policies of TARP banks. Working paper, The University of Edinburgh, Scotland.Google Scholar
• Stulz RM (2015) Risk-taking and risk management by banks. J. Appl. Corporate Finance 27(1):8–18.Crossref, Google Scholar
• Sun Z (2015) Institutional clientele and comovement. Working paper, University of California, Irvine.Google Scholar
• Ye P (2012) The value of active investing: Can active institutional investors remove excess comovement of stock returns? J. Financial Quant. Anal. 47(3):667–688.Crossref, Google Scholar