Government Involvement in the Corporate Governance of Banks

• 成果类型: Article
• 署名作者: Siming, Linus
• 署名单位: Audencia
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00702
• 发表日期: 2018-07
• 页码: 477-488
• 关键词: market

摘要

On March 18, 1976, the Swedish parliament voted on a bill that, if approved, would have substantially increased both the scale and scope of government representation on bank boards. Since parliament was hung, the outcome of the vote was decided by a lottery. We exploit this lottery to study the causal effect on shareholder value of government involvement in the corporate governance of banks. We find that the rejection of the bill resulted in positive abnormal returns that persisted in the following days. The results suggest that unsolicited government involvement in the corporate governance of banks is harmful for owners.