We examine the relation between state residual ownership and bank risk-taking for privatized banks from 45 countries. Applying propensity score matching, we find that privatized banks tend to exhibit higher levels of risk-taking post-privatization than their publicly listed non-privatized...

In this paper, we examine risk taking by publicly traded and privately owned banks in an institutionally diversified international sample of countries. Using the Z–score as our primary risk proxy, we find that publicly traded banks engage in less risky activities than their privately owned...

Policy uncertainty (PU) is an increasingly important issue in many economies. Extensive evidence indicates that higher PU is associated with future negative macroeconomic and microeconomic conditions. In this paper, we examine how PU affects banks' accruals for loan losses. Consistent with banks...