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Please use this identifier to cite or link to this item: http://repository.iitr.ac.in/handle/123456789/22738
Title: Board governance and bank performance: A meta- analysis
Authors: Bhatia M.
Gulati, Rachita
Published in: Research in International Business and Finance
Abstract: Using a database of 56 studies on corporate governance in the banking industry that were published between 2007 and 2019, this study performs a meta-analytic review to examine the impact of board governance on bank performance. We investigate how board size, CEO duality, outside directors, and female directors on board play a role in determining bank performance. Variations in the relationship between board governance and bank performance that attribute to moderating effects of potential moderators, including the system of corporate governance, bank performance measures, the definitions of governance variables, publication quality, and endogeneity concerns, are also encapsulated. Our study shows that bank performance is positively associated with larger boards and a high proportion of outside and female directors, supporting the resource dependence theory. We find that the moderating variables considerably alter the link between board governance and bank performance. The study offers ways to enhance board effectiveness by enforcing governance practices in the banking systems based on each countries’ legal and institutional framework and suggests reconsidering mandates for smaller boards and duality on boards of banking firms. © 2021 Elsevier B.V.
Citation: Research in International Business and Finance, 58
URI: https://doi.org/10.1016/j.ribaf.2021.101425
http://repository.iitr.ac.in/handle/123456789/22738
Issue Date: 2021
Publisher: Elsevier Ltd
Keywords: Agency theory
Bank performance
Board governance
Meta-analysis
Resource dependence theory
Stewardship theory
ISSN: 2755319
Author Scopus IDs: 57213109352
26221190300
Author Affiliations: Bhatia, M., Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Roorkee, Uttarakhand 247667, India
Gulati, R., Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Roorkee, Uttarakhand 247667, India
Corresponding Author: Gulati, R.; Department of Humanities and Social Sciences, India; email: rachita.gulati@hs.iitr.ac.in
Appears in Collections:Journal Publications [HS]

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