Technology-based boards and bank operational efficiency: Mediating effects of risk-taking

Yuchun Li, Tianhao Zhang, Yangzi Tao and Ling Wu

Finance Research Letters, 2025, vol. 76, issue C

Abstract: This study examines the nexus between technology-oriented boards, bank risk-taking, and bank operational efficiency by utilizing the background and operational data of directors and supervisors from 36 A-share listed banks in China spanning from the first quarter of 2007 to the fourth quarter of 2022. Our findings indicate that technology-oriented boards significantly enhance banks' operational efficiency, particularly in terms of cost and profit efficiency. Furthermore, we uncover that technical boards influence bank operational efficiency through risky decision-making, which serves as a mediating factor. In terms of heterogeneous effects, technology-oriented boards demonstrate a more pronounced impact on improving operational efficiency for banks that have established fintech departments.

Keywords: Technology-based directors; Bank risk-taking; Profit efficiency; Cost efficiency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325001886

DOI: 10.1016/j.frl.2025.106924

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