Further findings:
•Cross effect of options and bank capital:
“The negative association between the G-Index and …
securitized loan charge-offs is most pronounced in banks
where CEOs receive a higher value of stock options, and
where banks’ capital ratio is low.”
•Cross effect on risk retention:
“The negative impact of shareholder rights on securitization
quality is more pronounced for banks where securitization risks
are mostly retained.”
(Interactions terms negative and significant)