Board characteristics and Chinese bank performance

Qi Liang, Pisun Xu and Pornsit Jiraporn

Journal of Banking & Finance, 2013, vol. 37, issue 8, 2953-2968

Abstract: Using a sample of 50 largest Chinese banks during the period of 2003–2010, we explore a comprehensive set of board characteristics (size, composition and functioning of the board) and analyze their impacts on bank performance and bank asset quality in China. We find that the number of board meetings and the proportion of independent directors have significantly positive impacts on both bank performance and asset quality while board size has a significantly negative impact on bank performance. We find new evidence that the degree of bank boards’ political connection is negatively correlated with bank performance and asset quality. The findings suggest that the board of directors plays a significant role in bank governance in China.

Keywords: Bank performance; Bank reform; Board of directors; Corporate governance; Chinese banking (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 G34 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (137)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:37:y:2013:i:8:p:2953-2968

DOI: 10.1016/j.jbankfin.2013.04.018

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