Skip to main content
SpringerLink
Log in

Governance and the Financial Crisis: More Convergence, Less Risk?

  • Chapter
Global Asset Management

  • 680 Accesses

Abstract

Based on measures of world industrial output, world trade and stock markets, Eichengreen and O’Rourke (2009) argue that the current financial crisis may be worse than the Great Depression on a global scale. Perhaps no one would have been surprised if a crisis of this magnitude originated in an emerging market. Bordo and Eichengreen (2003) provide evidence that most financial crises occur in emerging markets. They describe 139 financial crises between 1973 and 1997, 95 of which occurred in emerging market countries.

A large part of the material in this chapter appeared previously in Adams, Renée (2012) ‘Governance and the Financial Crisis’, International Review of Finance, (12)1: 7–38.

Contact information: School of Banking and Finance, Australian School of Business, University of New South Wales, Sydney, NSW 2052, Australia. E-mail: renee.adams@unsvv.edu.au.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Adams, R. (2010) ‘Governance at Banking Institutions’, Chapter 23 in R. Anderson and H.K. Baker (eds), Corporate Governance, Wiley & Sons.

    Google Scholar 

  • Adams, R. (2011) ‘Corporate Governance’, to appear in the Encyclopedia of Financial Globalization, Gerard Caprio (ed.), Thorsten Beck, Charles Calomiris, Takeo Hoshi, Peter Montiel, and Garry Schinasi (assoc. eds), Elsevier.

    Google Scholar 

  • Adams, R. (2012) ‘Governance and the Financial Crisis’, International Review of Finance, 12(1): 7–38.

    Article  Google Scholar 

  • Adams, R. and Ferreira, D. (2007) ‘A Theory of Friendly Boards’, Journal of Finance, 62(1): 217–250.

    Article  Google Scholar 

  • Adams, R. and Ferreira, D. (2009) ‘Women in the Boardroom and their Impact on Governance and Performance’, Journal of Financial Economics, 94(2): 291–309.

    Article  Google Scholar 

  • Adams, R. and Ferreira, D. (2011) ‘Does Regulatory Pressure Provide Sufficient Incentives for Bank Directors? Evidence from Directors’ Attendance Records’, forthcoming, International Review of Finance.

    Google Scholar 

  • Adams, R. and Mehran, H. (2003) ‘Is Corporate Governance Different for Bank Holding Companies?’, Economic Policy Review, 9(1): 123–142.

    Google Scholar 

  • Adams, R. and Mehran, H. (2011) ‘Bank Board Structure and Performance: Evidence from Large Bank Holding’, forthcoming, Journal of Financial Intermediation.

    Google Scholar 

  • Adams, R., Hermalin, B. and Weisbach, M. (2010) ‘The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey’, Journal of Economic Literature, 48(1): 58–107.

    Article  Google Scholar 

  • Altinkiliç, O., Hansen, R. and Hrnjić, E. (2007) ‘Investment Bank Governance’, Tulane University Working Paper.

    Google Scholar 

  • Boone, A., Field, L., Karpoff, J. and Raheja, C. (2007) ‘The determinants of corporate board size and composition: An empirical analysis’, Journal of Financial Economics, 85: 66–101.

    Article  Google Scholar 

  • Bordo, M. and Eichengreen, B. (2003) ‘Crises now and then: What lessons from the last era of financial globalization?’, in Paul Mizen (ed.) Monetary History, Exchange Rates and Financial Markets: Essays in Honor of Charles Goodhart. Vol 2, Cheltenham: Edward Elgar.

    Google Scholar 

  • Cai, J., Saunders, T. and Steffens, S. (2012) ‘Syndication, Interconnectedness, and Systemic Risk’, New York University Working Paper.

    Google Scholar 

  • Coles, J., Daniel, N. and Naveen, L. (2008) ‘Boards: Does one size fit all?’, Journal of Financial Economics, 87: 329–356.

    Article  Google Scholar 

  • Deloitte, 2011, ‘Women in the boardroom — A global perspective’, EU calls for women to make up one-third of bank directors, January.

    Google Scholar 

  • Eichengreen, B. and O’Rourke, K. (2009) ‘A Tale of Two Depressions’, http://www.voxeu.org/index.php?q=node/3421, April 6.

  • Federal Reserve Bank of Kansas City (2010) Basics for Bank Directors, www.BankDirectorsDesktop.org.

  • Guerrera, F. and Larsen, P. (2008) ‘Gone by the board? Why bank directors did not spot credit risks’, Financial Times, June 25.

    Google Scholar 

  • Johnson, S., Boone, P. Breach, A. and E. Friedman (2000) ‘Corporate Governance in the Asian Financial Crisis’, Journal of Financial Economics, 58: 141–186.

    Article  Google Scholar 

  • Kirkpatrick, G. (2009) ‘The Corporate Governance Lessons from the Financial Crisis,’ Financial Markets Trends, 2009/1, OECD.

    Google Scholar 

  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. (1997) ‘Legal Determinants of External Finance’, Journal of Finance, 52(3): 1131–1150.

    Article  Google Scholar 

  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. (1998) ‘Law and Finance’, Journal of Political Economy, 106(6): 1113–1155.

    Article  Google Scholar 

  • Laeven, L. and Levine, R. (2009) ‘Corporate Governance, Regulation, and Bank Risk Taking’, Journal of Financial Economics, 93(2): 259–275.

    Article  Google Scholar 

  • Lehn, K., Patro, S. and Zhao, M. (2009) ‘Determinants of the Size and Composition of US Corporate Boards: 1935–2000’, Financial Management, 38(4), 747–780.

    Article  Google Scholar 

  • Leuz, C., Triantis, A. and Wang, T. (2008) ‘Why Do Firms Go Dark? Causes and Economic Consequences of Voluntary SEC Deregistrations’, Journal of Accounting and Economics, 45: 181–208.

    Article  Google Scholar 

  • Linck, J., Netter, J. and Yang, T. (2008) ‘The determinants of board structure’, Journal of Financial Economics, 87(2): 308–328.

    Article  Google Scholar 

  • Morgenson, G. (2009) ‘After Huge Losses, a Move to Reclaim Executives’ Pay’, New York Times, p. BU1, February 22.

    Google Scholar 

  • Morris, N. (2009) ‘Harriet Harman: If only it had been Lehman Sisters’, The Independent, August 4, http://www.independent.co.uk/news/uk/home-news/harriet-harman-if-only-it-had-been-lehman-sisters-1766932.html.

  • Moyer, L. (2008) ‘Off with their heads’, Forbes.com, available at http://www.forbes.com/2008/04/11/shareholders-banking-iss-biz-wallcx_lm_0411proxy.html, April 4.

  • Philippon, T. and Reshef, A. (2009) ‘Wages and Human Capital in the US Financial Industry: 1909–2006’, NBER Working Paper No. 14644.

    Google Scholar 

  • Protess, B. (2011) ‘In Split Vote, S.E.C. Adopts Corporate Pay Rules’, http://dealbook.nytimes.com/2011/01/25/s-e-c-adopts-say-on-pay-rules/, January 25.

  • Rodrik, D. (2009) ‘Simon Johnson’s morality tale’, http://rodrik.typepad.com/dani_rodriks_weblog/2009/03/simon-johnsons-morality-tale.html, March 30.

  • Rosen, R. (2003) ‘Is three a crowd? Competition among regulators in banking’, Journal of Money, Credit, and Banking, 35: 967–998.

    Article  Google Scholar 

  • Rosen, R. (2005) ‘Switching primary federal regulators: Is it beneficial for US banks?’, Economic Perspectives 29, 2005.

    Google Scholar 

  • Rushe, D. (2008) ‘Nouriel Roubini: I fear the worst is yet to come’, The Sunday Times, October 26.

    Google Scholar 

  • Treanor, J. (2011) ‘EU calls for women to make up one-third of bank directors’, http://www.guardian.co.uk/business/2011/jun/21/eu-women-bank-directors, June 21.

  • US House (2002) ‘The role of the board of directors in Enron’s collapse’, Committee on Governmental Affairs, Permanent Subcommittee on Investigations

    Google Scholar 

  • Walker, Sir D., (2009) ‘A review of corporate governance in UK banks and other financial industry entities’, Final recommendations, 26 November, http://www.hm-treasury.gov.uk/d/walker_review_261109.pdf.

  • Whalen, G. (2002) ‘Charter Flips by National Banks’, Office of the Comptroller of the Currency, E&PA Working Paper 2002–1.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of New South Wales, Australia

    Renée Adams (Professor of Finance and Commonwealth Bank Chair in Finance)

Authors
  1. Renée Adams
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Information, Operations and Management Sciences at the Stern School of Business, New York University, USA

    Michael Pinedo (Julius Schlesinger Professor of Operations Management and Chair) (Julius Schlesinger Professor of Operations Management and Chair)

  2. New York University Stern School of Business, USA

    Ingo Walter (President of SimCorpStrategyLab and the Seymour Milstein Professor of Finance, Corporate Governance and Ethics) (President of SimCorpStrategyLab and the Seymour Milstein Professor of Finance, Corporate Governance and Ethics)

Copyright information

© 2013 SimCorp StrategyLab

About this chapter

Cite this chapter

Adams, R. (2013). Governance and the Financial Crisis: More Convergence, Less Risk?. In: Pinedo, M., Walter, I. (eds) Global Asset Management. Palgrave Macmillan, London. https://doi.org/10.1057/9781137328878_14

Download citation

Publish with us

Policies and ethics

Search

Navigation