IDEAS home Printed from https://ideas.repec.org/a/sae/manlab/v47y2022i3p361-384.html
   My bibliography  Save this article

Role of Board Functions in Bank Performance: Direct and Indirect Effects of Board Independence

Author

Listed:
  • Rekha Handa

Abstract

The present study attempts to explore the Indian banking sector from 2007 to 2017 for its performance and for the influence of important characteristics like ownership of banks, board functioning and the effect of independent directors. The results establish that the type of bank has a significant impact on performance metrics, board characteristics and bank-specific features. Moreover, the positive significant influence of board size and board independence is confirmed using panel data analysis. Further, the partially mediating role of independent directors on the relationship of financial performance (measured through return on assets and return on equity) and board characteristics is confirmed using mediation analysis. The present research holds important insights for policymakers, regulators and stakeholders of the banking sector, with a push to reorient their emphasis on board independence and board functioning for better financials of banks in India.

Suggested Citation

  • Rekha Handa, 2022. "Role of Board Functions in Bank Performance: Direct and Indirect Effects of Board Independence," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 47(3), pages 361-384, August.
    • Handle: RePEc:sae:manlab:v:47:y:2022:i:3:p:361-384
    DOI: 10.1177/0258042X221078486
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0258042X221078486
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0258042X221078486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:manlab:v:47:y:2022:i:3:p:361-384. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.xlri.ac.in/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.