This study examines the relation between equity ownership composition and insolvency risk for savings and loans (S&Ls). We hypothesize that the effect of manager/stockholder alignments on bank risk-taking is contingent on the trade-off between stockholders' incentives for risk provided by...

This paper investigates the relationships among manager ownership, charter value, and thrift risk-taking for 1986 to 1995, a decade of significant regulatory change. We hypothesize that during periods of regulatory laxity and low charter values, manager-owned thrifts are likely to engage in...