DIVERSITY MEASURES AND QUALITY OF BANKS’ BOARDS: THE ITALIAN CASE

Rossella Locatelli (), Cristiana Schena (), Alessandra Tanda and Andrea Uselli ()
Additional contact information
Rossella Locatelli: Università degli Studi dell’Insubria, Department of Economics, Via Monte Generoso, 71, 21100 Varese, Italy
Cristiana Schena: Università degli Studi dell’Insubria, Department of Economics, Via Monte Generoso, 71, 21100 Varese, Italy
Andrea Uselli: Università degli Studi dell’Insubria, Department of Economics, Via Monte Generoso, 71, 21100 Varese, Italy

Journal of Financial Management, Markets and Institutions (JFMMI), 2018, vol. 06, issue 02, 1-28

Abstract: Most of the studies in corporate governance in banks and other types of firms investigate board diversity and quality separately, without considering the possible relationship between these two. To fill this gap, this study investigates through a new methodological approach the level of quality and diversity of the boards of a sample of Italian banks using a proprietary hand-collected database; in addition, it examines the relationship between diversity and quality of boards to verify whether more diversity consistently relates to higher quality, in accordance with the regulatory approach.Evidence shows that especially small and mutual banks need to improve quality and diversity, as they probably suffer from their limited attractiveness to top profile directors. Moreover, on analyzing interrelations we find evidence of a positive association between board diversity and quality. In particular, financial skills and experience of directors improve the qualitative level of banking boards.

Keywords: Corporate governance; bank governance; board composition; board diversity and quality; bank regulation (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2282717X18500093
Open Access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jfmmix:v:06:y:2018:i:02:n:s2282717x18500093

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2282717X18500093

Access Statistics for this article

Journal of Financial Management, Markets and Institutions (JFMMI) is currently edited by Santiago Carbo-Valverde

More articles in Journal of Financial Management, Markets and Institutions (JFMMI) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().