Portrait of Dr Timothy King

Dr Timothy King

Senior Lecturer in Finance Banking and Innovation
Head of Academic Disciplinary Committee
Director or CEQUFIN

About

Dr Tim King is Senior Lecturer in Finance, Banking and Innovation at the University of Kent. Previously he worked at the University of Leeds. He holds a PhD from Bangor University in which he examined the efficacy of corporate governance in banks and non-banks.

Research interests

Banks, Corporate Governance, Corporate Finance, Corporate Social Responsibility (CSR), Fintech, Risk-taking. 

Tim’s research to-date has focused on the theme of corporate governance in banks (and non-banks) and specifically on the roles played by executive compensation and heterogeneous characteristics on bank performance. 

His paper titled: ‘What's in an education? Implications of CEO education for bank performance’ published in the Journal of Corporate Finance is in the list of top-cited papers in the journal since 2016. A paper drawn from the second chapter of his PhD, which examined causal relationships between CEO pay structure and bank risk-taking, was awarded the prize for best paper at the 6th International Accounting and Finance Doctoral Symposium in June 2013.
In 2018 he was a winner of the ‘Young Investigator Training Program’. This award offers emerging international research talent (under 42) a visiting research fellowship worth €3,000 at a leading Italian university and was awarded by ACRI– Association of Italian Banking Foundations and Savings Banks. 

He is currently interested in the following main research areas: 

  • FinTech
  • Determinants and implications of bank risk-taking
  • Corporate Social Responsibility (CSR) in banks and non-banks 
  • Impact of significant events (natural disasters, terrorism, industry shocks) on managerial decision-making and firm performance.
  • Corporate governance in banking (e.g. pay, executive and board characteristics, regulatory reforms) 

Dr King also contributes actively to the wider academic community through attendance at leading international conferences, as well as a regular participant at the International Accounting and Finance Symposium

Tim also acts as a regular peer reviewer for leading international journals and publishing houses including: 

  • The Journal of Corporate Finance (Outstanding Reviewer Award 2017)
  • Corporate Governance: An International Review
  • Finance Research Letters
  • Business Research Quarterly
  • Journal of Financial Regulation and Compliance
  • Palgrave Macmillan
  • Oxford University Press. 

He is also on the editorial board for the Journal of Financial Regulation and Compliance. 

Teaching

Tim has extensive teaching experience in banking and finance subjects with exemplary feedback. At KBS, he is module convenor for CB8012: Financial Institutions Management and CB8013: Domestic and International Banking. Most recently, he was a 2019 University of Kent Student Union ‘Above and Beyond Award’ recognising his “exceptional teaching” on these Masters modules.
Prior to joining KBS, he taught on the Masters level Corporate Finance and Commercial Banking (as module convenor) modules at Leeds University Business School. During this time, he was nominated for a ‘University of Leeds Annual Partnership Award’ recognising excellence in teaching and feedback quality. Prior to this, he also contributed to teaching various finance and banking topics at Bangor Business School whilst reading for his PhD. 

Supervision

Tim welcomes PhD applications related to his primary research areas: 

  • Corporate governance in banking (e.g. pay, executive and board characteristics, regulatory reforms)
  • FinTech
  • Determinants and implications of bank risk-taking
  • Corporate Social Responsibility (CSR) in banks and non-banks 

Current Supervisees:

  • Omar Al-BatainehDividend Policy under Corporate Governance: Evidence from the UK (Second Supervisor)
  • Zhiyi Xia: Stock Liquidity, Institutional Ownership and R&D Innovation

Past Supervisees:

  • Andromachi Papachristopoulou: Policy uncertainty: Implications for financial sector stability 

Professional

  • Editorial board member for the Journal of Financial Regulation and Compliance
  • Regulatory published in leading international industry publications/magazines, including Corporate Board Member and Energy Voice
  • Consultancy work (e.g.as an expert witness in legal cases)
  • Engagement with associations including Acri (Association of Italian Banking Foundations) and Savings Banks 

Publications

Article

  • Fan, Y., Boateng, A., King, T. and MacRae, C. (2019). Board-CEO friendship ties and firm value: Evidence from US firms. International Review of Financial Analysis [Online] 65:101373. Available at: https://doi.org/10.1016/j.irfa.2019.101373.
    This study examines the impact of board-CEO friendship ties on firm value and explores potential channels through which changes in firm value may be conveyed, based on a sample of 1696 publicly listed firms in U.S. over the period of 2000–2014. The study reveals that board-CEO friendship ties have a negative and economically meaningful impact on firm value, as measured by Tobin's Q and Total Q. Regarding potential channels of firm value, we show that the negative influence of board-CEO friendship ties on firm value is reduced in firms with greater board advising requirements but intensified in firms with higher board monitoring needs. We also find social ties tend to destroy firm value whereas professional ties do not. Our results are robust to endogeneity concerns, and after controlling for board-CEO professional ties.
  • Srivastav, A., Armitage, S., Hagendorff, J. and King, T. (2018). Better safe than sorry? CEO inside debt and risk-taking in bank acquisitions. Journal of Financial Stability [Online] 36:208 - 224. Available at: https://dx.doi.org/10.1016/j.jfs.2018.04.005.
    Widespread bank losses during the financial crisis have raised concerns that equity-based compensation for bank CEOs causes excessive risk-taking. Debt-based compensation, so-called inside debt, aligns the interests of CEOs with those of external creditors. We examine whether inside debt induces CEOs to pursue less risky acquisitions. Consistent with this, we show that acquisitions announced by CEOs with high inside debt incentives are associated with a wealth transfer from equity to debt holders. After the completion of a deal, banks where acquiring CEOs have high inside debt incentives display lower market measures of risk and lower loss exposures for taxpayers.
  • King, T., Bozos, K. and Koutmos, D. (2017). Shareholder activism and equity price reactions. Economics Letters [Online] 160:100 - 104. Available at: http://dx.doi.org/10.1016/j.econlet.2017.09.012.
    Using a large dataset of 8,870 shareholder corporate social responsibility (CSR) proposals for US firms, we employ a novel methodological approach that allows for the estimation of dynamic share price and risk reactions. We show that formal activist shareholder recommendations can affect stock returns and risk. However, the direction and magnitude of these effects are conditional upon the nature of the proposal and the identity of the sponsor.
  • King, T., Srivastav, A. and Williams, J. (2016). What’s in an education? Implications of CEO education for bank performance. Journal of Corporate Finance [Online] 37:287 -308. Available at: http://dx.doi.org/10.1016/j.jcorpfin.2016.01.003.
    Exploiting a unique hand-built dataset, this paper finds that CEO educational attainment, both level and quality, matters for bank performance. We offer robust evidence that banks led by CEOs with MBAs outperform their peers. Such CEOs improve performance when compensation structures are geared towards greater risk-taking incentives, and when banks follow riskier or more innovative business models. Our findings suggest that management education delivers skills enabling CEOs to manage increasingly larger and complex banking firms and achieve successful performance outcomes.
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