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|Title:||Bank Liquidity Creation and Risk-Taking: Does Managerial Ability Matter?||Authors:||Andreou, Panayiotis
|Keywords:||Financial crisis;Financial institutions;Liquidity creation;Managerial ability;Risk-taking||Category:||Economics and Business||Field:||Social Sciences||Issue Date:||1-Jan-2016||Publisher:||Blackwell Publishing Ltd||Source:||Journal of Business Finance and Accounting, 2016, Volume 43, Issue 1-2, Pages 226-259||metadata.dc.doi:||10.1111/jbfa.12169||Abstract:||This study investigates the impact of managerial ability on banks' liquidity creation and risk-taking behavior. We find that higher ability managers create more liquidity and take more risk. During times of financial crisis, however, higher ability bank managers reduce liquidity creation as a way to de-leverage their balance sheets. Our findings inform recent theoretical and empirical studies that investigate determinants of liquidity creation and risk by introducing managerial ability as a prominent antecedent of the banks' intermediation and risk-transforming service. Moreover, this study has policy-related implications, since managerial ability can be quantified as a key performance indicator for prudential supervision of banks and could help regulators to target intervention efforts more purposefully during times of crisis.||URI:||http://ktisis.cut.ac.cy/handle/10488/9953||ISSN:||0306686X||Rights:||© 2016 John Wiley & Sons Ltd.||Type:||Article|
|Appears in Collections:||Άρθρα/Articles|
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