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

See all articles by Andreas G. Georgantopoulos

Andreas G. Georgantopoulos

National and Kapodistrian University of Athens; Panteion University of Athens - Panteion University of Political and Social Sciences

John Filos

Panteion University of Athens - Panteion University of Political and Social Sciences

Date Written: July 2, 2017

Abstract

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

Georgantopoulos, Andreas G. and Filos, John, Board Structure and Bank Performance: Evidence for the Greek Banking Industry During Crisis Period (July 2, 2017). International Journal of Economics and Financial Issues, 2017, 7(1), 56-67, Available at SSRN: https://ssrn.com/abstract=3413666

Andreas G. Georgantopoulos (Contact Author)

National and Kapodistrian University of Athens ( email )

Greece

Panteion University of Athens - Panteion University of Political and Social Sciences ( email )

136 Sygrou
Athens
Greece

John Filos

Panteion University of Athens - Panteion University of Political and Social Sciences ( email )

136 Sygrou
Athens
Greece

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