Supervisory boards, financial crisis and bank performance: do board characteristics matter?
Autor(a) principal: | |
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Data de Publicação: | 2017 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10198/14715 |
Resumo: | Failures in governance, especially in regard to boards of directors, have been blamed for the 2007-2008 financial crisis. The increased public scrutiny regarding the actions and role of the board of directors in banks, following the crisis, inspires to examine whether and to what extent the characteristics of banks’ boards influence their performance in the crisis. Using a sample of 72 publicly listed European banks, we find that banks with more independent and busy boards experienced worse stock returns during the crisis. Conversely, the better performing banks had more banking experts serving as supervisory directors. Additionally, we find that gender and age diversity improved banks’ performance during the crisis; hence, diversity matters. We also construct a governance quality index on the basis of board characteristics and conclude that governance quality positively affects banks’ returns during the crisis. Overall, we find evidence that banks’ performance during the financial crisis is a function of their boards’ characteristics. |
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Supervisory boards, financial crisis and bank performance: do board characteristics matter?Corporate governancePerformanceBanksFinancial crisisFailures in governance, especially in regard to boards of directors, have been blamed for the 2007-2008 financial crisis. The increased public scrutiny regarding the actions and role of the board of directors in banks, following the crisis, inspires to examine whether and to what extent the characteristics of banks’ boards influence their performance in the crisis. Using a sample of 72 publicly listed European banks, we find that banks with more independent and busy boards experienced worse stock returns during the crisis. Conversely, the better performing banks had more banking experts serving as supervisory directors. Additionally, we find that gender and age diversity improved banks’ performance during the crisis; hence, diversity matters. We also construct a governance quality index on the basis of board characteristics and conclude that governance quality positively affects banks’ returns during the crisis. Overall, we find evidence that banks’ performance during the financial crisis is a function of their boards’ characteristics.Biblioteca Digital do IPBFernandes, CatarinaFarinha, JorgeMartins, Francisco VitorinoMateus, Cesário2017-12-13T16:13:59Z20172017-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10198/14715engFernandes, Catarina; Farinha, Jorge; Martins, Francisco Vitorino; Mateus, Cesario (2017). Supervisory boards, financial crisis and bank performance: do board characteristics matter? Journal of Banking Regulation. ISSN 1745-6452. 18:4, p. 310–33710.1057/s41261-016-0037-5info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-21T10:34:31Zoai:bibliotecadigital.ipb.pt:10198/14715Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T23:04:29.821334Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? |
title |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? |
spellingShingle |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? Fernandes, Catarina Corporate governance Performance Banks Financial crisis |
title_short |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? |
title_full |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? |
title_fullStr |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? |
title_full_unstemmed |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? |
title_sort |
Supervisory boards, financial crisis and bank performance: do board characteristics matter? |
author |
Fernandes, Catarina |
author_facet |
Fernandes, Catarina Farinha, Jorge Martins, Francisco Vitorino Mateus, Cesário |
author_role |
author |
author2 |
Farinha, Jorge Martins, Francisco Vitorino Mateus, Cesário |
author2_role |
author author author |
dc.contributor.none.fl_str_mv |
Biblioteca Digital do IPB |
dc.contributor.author.fl_str_mv |
Fernandes, Catarina Farinha, Jorge Martins, Francisco Vitorino Mateus, Cesário |
dc.subject.por.fl_str_mv |
Corporate governance Performance Banks Financial crisis |
topic |
Corporate governance Performance Banks Financial crisis |
description |
Failures in governance, especially in regard to boards of directors, have been blamed for the 2007-2008 financial crisis. The increased public scrutiny regarding the actions and role of the board of directors in banks, following the crisis, inspires to examine whether and to what extent the characteristics of banks’ boards influence their performance in the crisis. Using a sample of 72 publicly listed European banks, we find that banks with more independent and busy boards experienced worse stock returns during the crisis. Conversely, the better performing banks had more banking experts serving as supervisory directors. Additionally, we find that gender and age diversity improved banks’ performance during the crisis; hence, diversity matters. We also construct a governance quality index on the basis of board characteristics and conclude that governance quality positively affects banks’ returns during the crisis. Overall, we find evidence that banks’ performance during the financial crisis is a function of their boards’ characteristics. |
publishDate |
2017 |
dc.date.none.fl_str_mv |
2017-12-13T16:13:59Z 2017 2017-01-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10198/14715 |
url |
http://hdl.handle.net/10198/14715 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Fernandes, Catarina; Farinha, Jorge; Martins, Francisco Vitorino; Mateus, Cesario (2017). Supervisory boards, financial crisis and bank performance: do board characteristics matter? Journal of Banking Regulation. ISSN 1745-6452. 18:4, p. 310–337 10.1057/s41261-016-0037-5 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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