TY - JOUR
T1 - Board characteristics and Chinese bank performance
AU - Liang, Qi
AU - Xu, Pisun
AU - Jiraporn, Pornsit
N1 - Funding Information:
We especially would like to express our gratitude to Jian Yang who participated in an earlier version of the paper and provided continuous guidance and assistance in the preparation of this paper. We also thank an anonymous referee for helpful comments. Liang acknowledges the support from the National Social Science Foundation of China (09&ZD037) and National Natural Science Foundation of China (71172066). The project is also supported by the Fundamental Research Funds for the Central Universities (NKZXA1212). Part of this research was conducted while Jiraporn served as a Visiting Associate Professor at Thammasat University and The National Institute of Development Administration (NIDA) in Bangkok, Thailand.
PY - 2013/8
Y1 - 2013/8
N2 - Using a sample of 50 largest Chinese banks during the period of 2003-2010, we explore a comprehensive set of board characteristics (size, composition and functioning of the board) and analyze their impacts on bank performance and bank asset quality in China. We find that the number of board meetings and the proportion of independent directors have significantly positive impacts on both bank performance and asset quality while board size has a significantly negative impact on bank performance. We find new evidence that the degree of bank boards' political connection is negatively correlated with bank performance and asset quality. The findings suggest that the board of directors plays a significant role in bank governance in China.
AB - Using a sample of 50 largest Chinese banks during the period of 2003-2010, we explore a comprehensive set of board characteristics (size, composition and functioning of the board) and analyze their impacts on bank performance and bank asset quality in China. We find that the number of board meetings and the proportion of independent directors have significantly positive impacts on both bank performance and asset quality while board size has a significantly negative impact on bank performance. We find new evidence that the degree of bank boards' political connection is negatively correlated with bank performance and asset quality. The findings suggest that the board of directors plays a significant role in bank governance in China.
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U2 - 10.1016/j.jbankfin.2013.04.018
DO - 10.1016/j.jbankfin.2013.04.018
M3 - Article
AN - SCOPUS:84878628008
SN - 0378-4266
VL - 37
SP - 2953
EP - 2968
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
IS - 8
ER -