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Determinants of European Banks’ bailouts following the 2007–2008 financial crisis

2016Journal article Open access
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dc.contributor.authorFernandes, Catarina
dc.contributor.authorFarinha, Jorge
dc.contributor.authorMartins, Francisco Vitorino
dc.contributor.authorMateus, Cesário
dc.date.accessioned2016-11-11T10:08:21Z
dc.date.available2016-11-11T10:08:21Z
dc.date.issued2016
dc.description.abstractExtraordinary amounts of public funds and/or assistance were made available to banks since the onset of the 2007–8 financial crises. Governments worldwide have launched a massive bailout package to support banks in distress. Using a probit model, this article investigates the likelihood of bailouts following the financial crisis. Our results lead us to conclude that the governance characteristics of banks, specifically the characteristics of boards, bank risks, as well as bank-level and country-specific banking sector features, explain the likelihood of bailouts in the European banking sector. In particular, we find that board banking experience, longer directors’ tenure, less busy boards, and the existence of a corporate governance committee decrease the likelihood of banks participating in a bailout programme. Inversely, board independence, credit, and liquidity risks increase the probability of banks being bailed out. Furthermore, fewer limitations on banking freedom and greater openness of the banking sector have a harmful impact on the occurrence of bailouts. Our study therefore suggests relevant policy implications, which might help supervisors, regulators, and other public authorities in avoiding costly bailouts.pt_PT
dc.identifier.citationFernandes, Catarina; Farinha, Jorge; Martins, Francisco Vitorino; Mateus, Cesario (2016). Determinants of European Banks’ bailouts following the 2007–2008 financial crisis. Journal of International Economic Law. ISSN 1369-3034. 19, p. 707–742pt_PT
dc.identifier.doi10.1093/jiel/jgw060pt_PT
dc.identifier.issn1369-3034
dc.identifier.urihttp://hdl.handle.net/10198/13452
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.publisherOxford University Presspt_PT
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/pt_PT
dc.subjectCorporate governancept_PT
dc.subjectBankspt_PT
dc.subjectFinancial crisispt_PT
dc.subjectRiskpt_PT
dc.subjectBailoutspt_PT
dc.titleDeterminants of European Banks’ bailouts following the 2007–2008 financial crisispt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.endPage742pt_PT
oaire.citation.issue3pt_PT
oaire.citation.startPage707pt_PT
oaire.citation.titleJournal of International Economic Lawpt_PT
oaire.citation.volume19pt_PT
person.familyNameFernandes
person.givenNameCatarina
person.identifier.ciencia-id9E19-46B7-D5BC
person.identifier.orcid0000-0002-3160-462X
person.identifier.scopus-author-id57192082026
rcaap.rightsopenAccesspt_PT
rcaap.typearticlept_PT
relation.isAuthorOfPublication8ab5a126-6c6f-4e57-9a3d-a40fbf1d80ff
relation.isAuthorOfPublication.latestForDiscovery8ab5a126-6c6f-4e57-9a3d-a40fbf1d80ff

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