Footnote:
In: Journal of Economics & Finance. Jul 2016, Vol. 40 Issue 3, p. 438-471
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2015 erstellt
Description:
We examine the relationship between performance of the bank holding company and several board characteristics. We find that board size, CEO tenure and board tenure enhance bank performance. However, we find no evidence that board structure or CEO power influences bank performance. More importantly, we show that the effect of board characteristics during the crisis is quite different. During the crisis, board size has a negative effect on Tobin's Q and the non-performing asset ratio, which supports Jensen's (1993) argument that large boards are less likely to function effectively. Further, we report that the non-performing asset ratio decreases with board independence during the crisis