Download This PaperThe Board Size and Board Composition Impact on Financial Performance: An Evidence from the Pakistani and Chinese Listed Banking Sector
MAJEED, M. K., JUN, J. C., Muhammad, Z. U. R., MOHSIN, M., & RAFIQ, M. Z. (2020). The Board Size and Board Composition Impact on Financial Performance: An Evidence from the Pakistani and Chinese’s Listed Banking Sector. The Journal of Asian Finance, Economics and Business (JAFEB), 7(4), 81-95.
15 Pages Posted: 20 May 2020
Date Written: February 24, 2020
Abstract
The main objective of this research is to investigate the impact of board size and board composition on financial performance of banks. The sample of this study consists on two countries listed bank sector Pakistan and China. The annul data is used from 2009-2018 to find the objective of this study. The Panel regression model is used to check the relationship between dependent and independent variables. Return on Asset and Return on Equity is used as performance checker dependent variables. The results of this study confirm board size coefficient value positive for ROA and negative for ROE but shows insignificant behavior for Pakistani banking sector while in Chinese banking sector the coefficient value of board size positively for ROA and ROE at 10% level. The board composition coefficient shows the negatively significant with ROA but insignificantly related to ROE for Pakistani banking sector. However, in Chinese banking sector the coefficient value of board composition is insignificant for both ROA and ROE. This study is helpful for banks, management of banks, policy makers, researcher as well as Government.
Keywords: Board Structure, Board Size, Commercial Banks, External Directors, Financial Performance
JEL Classification: F36, G21, G03, M21
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