Essays on Bank Bailouts: Predictive Factors, Gender Influence on Bank Performance, and Risk Aspects

Abstract

This thesis provides comprehensive research on the banking industry, beginning with examining the predictability of bank bailouts. Following that, it proceeds to investigate the influence of gender diversity on the banking sector, closely examining the relationship between the involvement of women on the board of directors and the performance of banks. In addition, the study expands its range to evaluate the impact of gender diversity on different risk aspects in banks, such as credit, market, and operational risks. This offers an in-depth overview of how gender balance can influence risk management strategies in the banking sector. This study provides an empirical investigation of the impact of tail risk measures, namely value-at-risk (VaR), Cornish-Fisher Value-at-Risk (VaRCF), and Expected Shortfall (ES), on the probability of bank bailouts for publicly traded bank holding companies (BHCs) in the United States. Our findings reveal a significant and positive association between tail risk measures and bank bailouts, indicating that BHCs with a higher incidence of extreme negative daily equity returns are exposed to greater tail risks, which increase their likelihood of receiving government assistance. These outcomes underscore the importance of prudential regulatory frameworks that promote market discipline to mitigate against potential tail risks. In addition, this thesis investigates the impact of gender diversity on the performance of the US banks after the government's bailout initiatives. Based on critical mass theory, the study provides comprehensive empirical evidence that the relationship between board gender diversity and bank performance is contingent on a specific level of gender diversity on the board. Specifically, the optimal proportion of women positively affecting performance is under the tilted groups, which is between 20% and 40% of the board members. This thesis not only investigates the ideal proportion of women on the board in relation to bank performance, but it also examines its impact on credit, market, and operational risks on the US banks after the government's bailout efforts. The research presents empirical data that supports the critical mass theory, indicating that the association between board gender diversity and bank risk depends on a certain level of gender diversity on the board. More precisely, the ideal ratio of women that has a negative impact on risk is also within the range of 20% to 40% of the board members in the tilted groups. These findings resolve the conflicting results from prior studies on this issue.

Publication DOI: https://doi.org/10.48780/publications.aston.ac.uk.00047373
Divisions: College of Business and Social Sciences > Aston Business School
Additional Information: Copyright © Mohajer Abdullah H Alowisi, 2024. Mohajer Abdullah H Alowisi asserts his moral right to be identified as the author of this thesis. This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognise that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without appropriate permission or acknowledgement. If you have discovered material in Aston Publications Explorer which is unlawful e.g. breaches copyright, (either yours or that of a third party) or any other law, including but not limited to those relating to patent, trademark, confidentiality, data protection, obscenity, defamation, libel, then please read our Takedown Policy and contact the service immediately.
Institution: Aston University
Last Modified: 21 Mar 2025 13:34
Date Deposited: 21 Mar 2025 13:32
Completed Date: 2024-08
Authors: Alowisi, Mohajer Abdullah H.

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