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Corporate governance impact on bank performance: Evidence from Europe

Corporate governance impact on bank performance: Evidence from Europe

Mateus, Cesario and Belhaj, Salma (2016) Corporate governance impact on bank performance: Evidence from Europe. Corporate Ownership and Control, 13 (4). pp. 583-597. ISSN 1727-9232 (Print), 1810-3057 (Online) (doi:10.22495/cocv13i4c4p8)

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Abstract

This paper investigates the impact of corporate governance on European bank performance during the period 2002-2011. Using a sample of 73 banks from 11 European countries, we examine the relationship between corporate governance measures more specifically the board size and composition, the gender diversity and the CEO duality on the European bank performance. During the period 2002-2011, our results show that the board size and the gender diversity have a positive and significant impact on bank performance. Large board of directors with more female members led to better bank performance, whereas, the board composition and the CEO duality have no significant effect in explaining the bank performance for the European countries. During the global financial crisis, our findings show that the board size and the board composition are negatively and significantly correlated to the bank performance. Smaller boards of directors with less number of independent (non-executive) directors have outperformed the ones with larger boards and more independent directors during the crisis. However, the gender diversity and the CEO duality have no significant impact on the European bank performance.

Item Type: Article
Uncontrolled Keywords: Corporate governance; Bank performance; European countries; Board size; Board composition; Gender diversity; CEO duality
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Faculty / School / Research Centre / Research Group: Faculty of Business
Faculty of Business > Department of Accounting & Finance
Related URLs:
Last Modified: 26 Sep 2018 16:07
URI: http://gala.gre.ac.uk/id/eprint/16103

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