Sitting on the fence: does having a ‘dual-director’ add to bank profitability?

Polina Savchenko () and Maria Semenova
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Polina Savchenko: Center for Institutional Studies, National Research University ‘Higher School of Economics’, Moscow, Russia

HSE Working papers from National Research University Higher School of Economics

Abstract: This paper investigates how combining positions between the board of directors and top-management affects bank profitability. We use 2010 bank-level data from 112 countries. Our results suggest that combining positions reduces both ROE and ROA of banks. However, for banks in developing countries, the influence proves to be positive. We also show that the higher the proportion of the board members who simultaneously hold a managerial position, the lower the profitability of the bank. This effect is observed both for developed and developing countries

Keywords: corporate governance; banks; profitability (search for similar items in EconPapers)
JEL-codes: G21 G34 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2013
New Economics Papers: this item is included in nep-ban and nep-cba
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in WP BRP Series: Financial Economics / FE, August 2013, pages 1-23

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http://www.hse.ru/data/2013/08/14/1291400423/16FE2013.pdf (application/pdf)

Related works:
Journal Article: Sitting on the fence: does having a 'dual-director' add to bank profitability? (2015)
Journal Article: Sitting on the Fence: Does Having a "Dual-Director" Add to Bank Profitability? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:16/fe/2013

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