Edited by James R. Barth, Chen Lin and Clas Wihlborg
The contributors – top international scholars from finance, law and business – explore the role of governance, both internal and external, in explaining risk-taking and other aspects of the behavior of financial institutions. Additionally, they discuss market and policy features affecting objectives and quality of governance. The chapters provide in-depth analysis of factors such as: ownership, efficiency and stability; market discipline; compensation and performance; social responsibility; and governance in non-bank financial institutions. Only through this kind of rigorous examination can one hope to implement the financial reforms necessary and sufficient to reduce the likelihood and severity of future crises.
James R. Barth and Ross Levine
This Research Review gathers together fifty influential articles published over the past four decades on the regulation and governance of financial institutions. Some contribute by making theoretical advances that enhance the conceptual framework through which economists view financial institutions, and others contribute by assembling data and evaluating the predictions of these different models. Including an original introduction, the papers provide a foundation for understanding and conducting additional research into the regulation and governance of financial institutions.