Board Structure and Bank Performance: Evidence for the Greek Banking Industry During Crisis Period
International Journal of Economics and Financial Issues, 2017, 7(1), 56-67
12 Pages Posted: 3 Jul 2019
Date Written: July 2, 2017
The recent financial crisis has heightened the research interest worldwide in the relationship between various corporate governance (CG) mechanisms and firm performance. Nevertheless, few published papers focus on investigating this nexus for the case of the banking industry. This study is the first that empirically assesses the impact of board structure on bank performance for the case of Greek banks using a variety of econometric methodologies. Exhaustive empirical findings are presented based on a sample of 13 Greek banks and for a period of severe sovereign debt crisis (2008-2014). Empirical findings support an inverted U-shaped relation between board size and bank performance and between the proportion of independent board members and performance of Greek banks. All empirical findings are generated after we control for mergers and acquisitions activity, bank size and capital adequacy of each bank. Overall, our results document the positive contribution of the implemented CG regulatory framework on the Greek bank value.
Keywords: Corporate Governance, Bank Performance, Board Structure
JEL Classification: C52, G34, G21
Suggested Citation: Suggested Citation