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Bank liquidity and the board of directors

Author

Listed:
  • Delis, Manthos D
  • Gaganis, Chrysovalantis
  • Pasiouras, Fotios

Abstract

This short paper presents the first attempt to examine empirically the relationship between the level of bank liquidity and the structure of the board of directors, in terms of board size and independence. A novel database on these board characteristics is built that includes banks operating in 10 OECD countries during the period 2000-2006. We find a negative relationship between board size and liquidity, while the impact of board independence is U-shaped. Therefore, we contend that considerations linked to these effects can have interesting implications for the design of bank conduct and for the quality of bank portfolios.

Suggested Citation

  • Delis, Manthos D & Gaganis, Chrysovalantis & Pasiouras, Fotios, 2009. "Bank liquidity and the board of directors," MPRA Paper 18872, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18872
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    References listed on IDEAS

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    Cited by:

    1. Chen, Naiwei & Huang, Hsiu-Hsi & Lin, Chia-He, 2018. "Equator principles and bank liquidity," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 185-202.

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    More about this item

    Keywords

    Banks; Board size and independence; Liquidity risk;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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