Casu, Barbara and Gallo, Angela and Kalotychou, Elena and Sarkisyan, Anna (2022) Bank Misconduct, Board Diversity and CEO Turnover. Review of Corporate Finance. (In Press)
Casu, Barbara and Gallo, Angela and Kalotychou, Elena and Sarkisyan, Anna (2022) Bank Misconduct, Board Diversity and CEO Turnover. Review of Corporate Finance. (In Press)
Casu, Barbara and Gallo, Angela and Kalotychou, Elena and Sarkisyan, Anna (2022) Bank Misconduct, Board Diversity and CEO Turnover. Review of Corporate Finance. (In Press)
Abstract
This paper investigates corporate reactions to bank misconduct episodes. We test whether more diverse boards have a stronger disciplining effect and trigger ‘changes at the top’. We consider misconduct fines issued by US regulators to EU listed banks during the period 2009- 2018. We find that CEO dismissals are more likely following regulatory fines, but not during the investigation process. Board gender diversity does not seem to impact on boards’ decision to fire the CEO, nor reinforce boards’ disciplining effect in the presence of misconduct. The presence of foreign directors and age diversity increase the likelihood of CEO dismissal following regulatory sanctions.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Misconduct; Gender diversity; CEO turnover; Board of directors; Bank |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School Faculty of Social Sciences > Essex Business School > Essex Finance Centre |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 14 Apr 2022 12:32 |
| Last Modified: | 23 Sep 2022 19:53 |
| URI: | http://repository.essex.ac.uk/id/eprint/32654 |
Available files
Filename: Bank Misconduct, Board Diversity and CEO Turnover.pdf
Embargo Date: 1 January 2100