Does regulating remuneration affect the market value of European Union banks? Large versus small/medium sizedbanks banks

Abstract: The aim of this paper was to analyze equity market reactions to the mandatory European Union regulation of remuneration policies in financial institutions. Using event study methodology, we investigated market reactions to the first European Directive on compensation policies after the financial crisis using a sample of 124 banks operating in the European Union.We divided the sample into two groups according to bank size considering four criteria: the US Dodd-Frank Act 2010, the Liikanen Report 2012, Global Systemically Important Banks 2011, and the European Central Bank 2014.We found strong evidence of an average negative market reaction to compensation regulation. Moreover, this negative reaction is stronger for large banks than for small/medium sized banks.

Otras publicaciones de la misma revista o congreso con autores/as de la Universidad de Cantabria

 Fuente: Regulation & Governance (2020) 14, 150-164

Editorial: Wiley-Blackwell

 Año de publicación: 2020

Nº de páginas: 15

Tipo de publicación: Artículo de Revista

 DOI: 10.1111/rego.12175

ISSN: 1748-5983,1748-5991

Proyecto español: Governance, incentives, and risk management in global banks (APIE Num. 2/2015?2017)

Url de la publicación: http://onlinelibrary.wiley.com/doi/10.1111/rego.12175/full