Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180638 
Year of Publication: 
2018
Series/Report no.: 
DIW Discussion Papers No. 1739
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This paper sheds new light on how African countries' legal systems and institutions influence the governance and stability of their banks. We find that institutional factors, in particular the legal family of origin, political stability, contract enforcement and strength of investor protection promote central corporate governance reforms. Using a difference-in-difference approach, we also reveal that those reforms mediate the impact of institutions on banks. If countries have a corporate governance reform in place their banks show better internal governance and higher stability.
Subjects: 
African banks
corporate governance
legal systems
institutions
bank stability
JEL: 
G21
G28
G30
G32
G38
Document Type: 
Working Paper

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