Supervision

What Makes Autonomous Management Do Well? Corporate Governance without External Controls

Monetary Liability for Breach of the Duty of Care?

This paper clarifies why optimal corporate governance generally excludes monetary liability for breach of directors? and managers? fiduciary duty of...

Good Monitoring, Bad Monitoring

Are courts effective monitors of corporate decisions? In a controversial landmark case, the Delaware Supreme Court held directors personally liable...

Corporate Governance of Banks and Financial Institutions: Economic Theory, Supervisory Practice, Evidence and Policy

Banks are special, and so is the corporate governance of banks and other financial institutions as compared with the general corporate governance of...

Evolving Directors’ Duties in the Common Law World

Legal scholars have long discussed the gap, or “acoustic separation”, between stringent standards of conduct (“conduct rules”) and more...

Common Banking Supervision in the Eurozone: Strengths and Weaknesses

In this paper we analyse various instances of supervisory centralization either implemented or proposed in Europe in the aftermath of the financial...

Monitoring Managers: Does it Matter?

We study how well-incentivized boards monitor CEOs and whether such monitoring improves performance. Using unique, detailed data on boards’...

Risk-shifting through Issuer Liability and Corporate Monitoring

This article explores how issuer liability reallocates fraud risk and how risk allocation may reduce the incidence of fraud. In the US, the apparent...

The Governance of Financial Supervisors: Improving Responsiveness to Market Developments

The Effect of Creditor Rights on Bank Monitoring, Capital Structure and Risk-taking

We examine the multi-faceted effect of creditor rights on the way banks monitor, operate and finance themselves. We present a simple analytical model...

Single Supervision and the Governance of Banking Markets

In this paper, I try to assess the likely impact of the Single Supervisory Mechanism (SSM) on Eurozone banking markets. I start by analysing the...

Use of AI by Financial Players: The Emerging Evidence

Financial supervisors as well as financial intermediaries increasingly rely on AI. However, little remains known about the scope and...