Akhigbe, Aigbe; McNulty, James E. - In: Journal of Economics and Business 63 (2011) 6, pp. 531-551
We build a bank-specific, fixed-effects regression model to develop proxies for a bank's monitoring effort. Our results show that banks that devote more resources to monitoring (based on these proxies) are more profit efficient and the effect is large. A very important theoretical literature in...