As equity ownership may provide important incentives to bank CEOs to maximize bank value and limit the bank’s risk exposure, we include the CEO’s equity ownership as an additional corporate governance variable.
The natural logarithm of the US dollar value of all shares owned by the CEO as obtained from Standard and Poor’s ExecuComp database. In unreported robustness tests, we also use the percentage ownership of the CEO as an alternative measure of CEO ownership.13 As a further (Aebi, 2012)