A new academic study suggests that a number of variables affected the severity of the financial crisis for individual banks, including the possibility that improved governance and shareholder relations may actually have correlated to worse performance during the crisis, according to the Harvard corporate governance blog. According to Professors René Stulz and Andrea Beltratti of Oho State University Fisher College of Business and Italy’s Bocconi University respectively, banks with pro-shareholder boards performed worse through the financial crisis than did their self-governing counterparts.
Study: Good Governance May Have Had Bad Results in Crisis
One study shows that improved corporate governance may have actually had a negative effect on stock performance for banks during the credit crisis.
August 31, 2009