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Boards of Banks

  • Daniel Ferreira

    ()

  • Tom Kirchmaier

    ()

  • Daniel Metzger

    ()

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    We show that country characteristics explain most of the cross-sectional variation in bank board independence. In contrast, country characteristics have little explanatory power for the fraction of outside bank directors with experience in the banking industry. Exploiting the time-series dimension of the sample, we show that changes in bank characteristics are not robustly associated with changes in board independence, while changes in board experience are positively related to changes in bank size and negatively related to changes in performance. The evidence suggests that country-specific laws and regulations affect the composition of boards of banks mainly through requirements for director independence.

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    File URL: http://www.lse.ac.uk/fmg/workingPapers/discussionPapers/DP664_2010_BoardsofBanks.pdf
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    Paper provided by Financial Markets Group in its series FMG Discussion Papers with number dp664.

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    Date of creation: Jan 2011
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    Handle: RePEc:fmg:fmgdps:dp664
    Contact details of provider: Web page: http://www.lse.ac.uk/fmg/

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