Board Determinants in Banking Industry. An International Perspective
Andr‚s Alonso, Pablo de,
Romero Merino, M¦ Elena (),
Santamar¡a Mariscal, Marcos () and
Eleuterio Vallelado Gonz lez ()
Additional contact information Romero Merino, M¦ Elena: Facultad de Ciencias Jur¡dicas y Econ¢micas, Universidad Europea Miguel de Cervantes, http://www.uemc.edu/es/Paginas/default.aspx Santamar¡a Mariscal, Marcos: Departamento de Econom¡a y Administraci¢n de Empresas, Facultad de Ciencias Econ¢micas y Empresariales, Universidad de Burgos, http://www2.ubu.es/ecademp/ Eleuterio Vallelado Gonz lez: Departamento de Econom¡a Financiera y Contabilidad, Facultad de Ciencias Econ¢micas y Empresariales, Universidad de Valladolid, http://www5.uva.es/efc//
Abstract:
We identify the factors influencing the board composition of an international sample of commercial banks over the period 1996?2006. After considering the dual role of the board as monitor and advisor, our analysis shows that no one board composition is optimal for the banking industry and that any such recommendation could harm bank governance. Our results suggest that more complex banks that have a low ownership concentration and are headquartered in a civil law country should have larger and more independent boards.