Bank board structure and performance: Evidence for large bank holding companies

Adams, Renée and Mehran, Hamid Bank board structure and performance: Evidence for large bank holding companies. Journal of Financial Intermediation, 21 (2). pp. 243-267. (Accepted)

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 34 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.

Item Type: Article
Keywords: Corporate Governance, Board structure, Banking industry, Holding company, Complexity, finance
Subject(s): Finance
Date Deposited: 03 Oct 2018 15:49
Last Modified: 03 Oct 2018 15:49
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6964

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