Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
961040 | Journal of Financial Intermediation | 2012 | 25 Pages |
Abstract
The subprime crisis highlights how little we know about bank governance. This paper addresses a long-standing gap in the literature by analyzing the relationship between board governance and performance using a sample of banking firm data that spans 34Â years. We find that board independence is not related to performance, as measured by a proxy for Tobin's Q. However, board size is positively related to performance. Our results are not driven by M&A activity. But, we provide new evidence that increases in board size due to additions of directors with subsidiary directorships may add value as BHC complexity increases. We conclude that governance regulation should take unique features of bank governance into account.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Strategy and Management
Authors
Renée B. Adams, Hamid Mehran,