Confusion Between the CEO and Chairman: Empirical Evidence of Effects on Bank Risk and Performance

2018 ◽  
Author(s):  
Jonathan N. Crook ◽  
Sean Harkin ◽  
Davide Salvatore Mare
Author(s):  
Matthew Baugh ◽  
Matthew Ege ◽  
Christopher G. Yust

Using a sample of bank-years from 2005 to 2017, we examine the effect of internal control quality on future risk-taking and performance. We find that banks that disclose a material weakness in internal controls have higher risk-taking and worse performance in the future, including having a higher (lower) likelihood of experiencing large losses (gains). These findings suggest that weak controls increase (reduce) downside (upside) risk-taking or conversely that strong controls increase (reduce) upside (downside) risk-taking. Path analyses suggest that 22.3 to 43.7 percent of the effect of internal control quality on future performance is through risk-taking. Additionally, material weaknesses are negatively associated with total asset, loan, interest income, and non-interest income growth, suggesting that internal control quality affects both core and non-core activities of banks. Overall, results suggest that strong internal controls improve bank risk-taking, in part through asymmetrically reducing downside risk-taking while facilitating upside risk-taking, ultimately improving bank performance.


Author(s):  
Mohd Khairuddin Hashim

Despite the general notion that distinctive capabilities are crucial to the success affirms, empirical studies that focused on this strategic variable in SMEs remains limited. This study seeks to address this research issue by empirically investigating 100 SMEs in the Malaysian manufacturing sector. The findings of the study suggest that the SMEs studied established capabilities in several business functional areas. In addition, the results of the correlations indicate statistically significant positive relationship between distinctive capabilities and the performance of the SMEs in this study.  


2016 ◽  
Vol 40 (3) ◽  
pp. 398-421 ◽  
Author(s):  
Mohammad Bitar ◽  
Wadad Saad ◽  
Mohammed Benlemlih

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