Issues in the Corporate Governance of Banks. and Implications on Financial Reporting

Transcription

1 Kai Dänzer Issues in the Corporate Governance of Banks and Implications on Financial Reporting Inauguraldissertation zur Erlangung des akademischen Grades eines Doktors der Wirtschaftswissenschaften der Universität Mannheim vorgelegt im Herbst-/Wintersemester 2014

2 ListofFigures List of Tables List of Abbreviations List of Symbols III VII K XIII XIX 1 General Introduction 1 2 The Ultimate Ownership Structure in the Banking Industry Introduction Literature on the Structure of Ultimate Ownership Pattern of Ultimate Control Separation of Ownership and Control Separation of Management and Control Data Collection and Identification of Ultimate Control Data Collection Rationale for Collecting Data Sample Composition and Data Collection Procedura Identifying Ultimate Control Measuring Control Rights and Cash Flow Rights Means of Separating Cash Flow and Control Rights 22 III

3 IV TypesofUltimateControl Separation of Control and Management Examples Pattern of Ultimate Control Pattern of Ultimate Control Across Countries Pattern of Ultimate Control and Governance Quality Pattern of Ultimate Control and Bank Size Pattern of Ultimate Control and Public Equity Funding Separation of Ownership and Control Use of Control Enhancing Means Pyramids and Multiple Control Chains Cross-holdings Controlling Owner Alone Separation of Cash Flow and Control Rights Separation of Management and Control Ultimate Controlling Owner Founder and Descendants Conclusions 71 Appendix 2 A Pattern of Ultimate Control Across the Füll Sample Appendix 2.B Pattern of Ultimate Control: Additional Analyses 78 Appendix 2.C Separation of Cash Flow and Control: Additional Analyses 87 3 Funding Strategie«and Earnings Quality in the Banking Industry Introduction Institutional Background and Hypotheses Development Deposit Funding Money Market Funding Bond Market Funding Summary of Hypotheses Research Methodology Sample Description and Descriptive Statistics Determination of the Funding Structure Measuring Earnings Properties Conditional Conservatism 113

4 V Earnings Persistence Predictability of Cash Flows Regression Analysis Regression Results Additional Analyses and Discussion Loan Loss Accounting Robustness Analysis Discussion Conclusions 128 Appendix 3.A Variable Definitions 130 Appendix 3.B Additional Analyses and Robustness Tests Regulatory Intervention, Rules-based Guidance, and Comparability Introduction Disclosure Requirements under IFRS Disclosure on Risk Exposures Arising from Financial Instruments Disclosure on Fair Value Measurements Hypotheses Development Footnote Similarity and Regulatory Intervention Footnote Similarity and Rules-based Standard Setting Footnote Similarity, Regulatory Intervention, and Rules-based Standard Setting Research Methodology Data Collection on Banks'Disclosure Practices Classification of Interventionist and Non-Interventionist Regulators Sample Selection and Sample Description Footnote Similarity Measuring Footnote Similarity Footnote Disclosures and Footnote Similarity Regression Analysis Univariate Analysis Regression Results 183

5 VI Regression Model and Control Variables Regression Results Footnote Similarity and Comparability Disclosure Quality Variation in Business Characteristics Accounting Comparability Discussion Robustness Analysis Classification of Interventionist and Non-Interventionist Countries Research Design Conclusions 202 Appendix 4.A Data Collection and Disclosure Items 204 Appendix 4.B Variable Definitions 206 Appendix 4.C Supplementary Descriptive Statistics 207 Appendix 4.D Identification of Institutional Clusters across European Countries 222 Appendix 4.E Robustness Analysis Summary 233 References 237