The Effect of Multiple Large Shareholders on Banks’ Profitability and Risk

Research output: Contribution to journalArticlepeer-review

Abstract

The wide-ranging academic literature on corporate governance in the banking sector includes only a few studies on bank ownership and, specifically, on the comparative power of shareholders within the corporate structure. This paper reports an investigation into the presence of multiple large shareholders and their influence on profitability and risk in the long-term, considering a sample of 697 U.S. and European listed commercial banks from 2008 to 2018. It was found that the number of large and institutional shareholders has a positive impact on profitability, but no effect on risk. However, long-term ownership by multiple large shareholders contributes to decreasing risk in banks.
Original languageEnglish
Pages (from-to)1888-N/A
Number of pages15
JournalSustainability
Volume13
DOIs
Publication statusPublished - 2021

Keywords

  • Banks
  • corporate governance
  • long-term ownership
  • multiple large shareholders

Fingerprint

Dive into the research topics of 'The Effect of Multiple Large Shareholders on Banks’ Profitability and Risk'. Together they form a unique fingerprint.

Cite this