@article{3376, abstract = {{Employing compensation data provided by 63 banks from 16 European countries for the period from 2000 to 2010 this paper empirically investigates the impact of excess variable compensation on bank risk. As a main finding, we provide evidence for a risk-increasing impact of excess variable pay for both executive variable cash-based and variable equity-based compensation. This baseline finding holds under various robustness checks, in particular when controlling for likely reverse causality between bank risk and variable compensation by employing Granger-causality tests and instrumental variable regressions. In addition, results from a large number of sensitivity analyses including board and banking characteristics as well as the financial crisis period and the quality of a country's regulatory framework provide further important implications for banking regulators and politicians in Europe.}}, author = {{Uhde, André}}, journal = {{The Quarterly Review of Economics and Finance}}, keywords = {{Banking, Executive compensation, Risk-taking, Financial stability}}, number = {{5}}, pages = {{12--28}}, publisher = {{Elsevier}}, title = {{{Risk-taking incentives through excess variable compensation: Evidence from European banks}}}, doi = {{https://doi.org/10.1016/j.qref.2015.11.009}}, volume = {{60}}, year = {{2016}}, } @article{4406, abstract = {{Using aggregate balance sheet data from banks across the EU-25 over the period from 1997 to 2005 we provide empirical evidence that national banking market concentration has a negative impact on European banks’ financial soundness as measured by the Z-score technique while controlling for macroeconomic, bank-specific, regulatory, and institutional factors. Furthermore, our analysis reveals that Eastern European banking markets exhibiting a lower level of competitive pressure, fewer diversification opportunities and a higher fraction of government-owned banks are more prone to financial fragility whereas capital regulations have supported financial stability across the entire European Union.}}, author = {{Uhde, André and Heimeshoff, Ulrich}}, journal = {{Journal of Banking & Finance}}, keywords = {{Market structure, Financial stability, Banking regulation}}, number = {{7}}, pages = {{1299--1311}}, title = {{{Consolidation in banking and financial stability in Europe: Empirical evidence}}}, doi = {{https://doi.org/10.1016/j.jbankfin.2009.01.006}}, volume = {{33}}, year = {{2009}}, }