Executive board composition and bank risk taking
Allen N. Berger,
Thomas Kick and
Klaus Schaeck
Journal of Corporate Finance, 2014, vol. 28, issue C, 48-65
Abstract:
Little is known about how the demographic characteristics of executive teams affect corporate governance in banking. Exploiting a unique dataset, we investigate how age, gender, and educational composition of executive teams affect the portfolio risk of financial institutions. Using difference-in-difference estimations that focus exclusively on mandatory executive retirements for the entire population of German bank executive officers, we demonstrate that younger executive teams increase portfolio risk, as do board changes that result in a higher proportion of female executives, although this latter effect is weaker in terms of both statistical and economic significance. In contrast, when board changes increase the representation of executives holding Ph.D. degrees, portfolio risk declines.
Keywords: Banks; Executives; Portfolio risk; Age; Gender; Education (search for similar items in EconPapers)
JEL-codes: G21 G34 I21 J16 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (214)
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Working Paper: Executive Board Composition and Bank Risk Taking (2012) ![Downloads](/downloads_econpapers.gif)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:28:y:2014:i:c:p:48-65
DOI: 10.1016/j.jcorpfin.2013.11.006
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