Strong Boards, Risk Committee and Bank Performance: Evidence from India and China

Francesca Battaglia (), Angela Gallo and Anna Elvira Graziano
Additional contact information
Francesca Battaglia: University of Naples Parthenope
Anna Elvira Graziano: University of Rome, “Tor Vergata”

A chapter in Corporate Governance in Emerging Markets, 2014, pp 79-105 from Springer

Abstract: Abstract The recent financial crisis has raised several questions with respect to the corporate governance of financial institutions. This paper investigates whether boards of directors and risk management-related corporate governance mechanisms are associated with a better bank performance during the financial crisis of 2007/2008 for a sample of Chinese and Indian listed banks. We measure market bank performance by Tobin’ Q and price-earnings ratio. In line with the previous literature on US banks, we find the general irrelevance of the standard board’s variables when specific variables related to the risk committee are included in the analysis. We find that the market valuation and the expected market growth (Tobin’ Q and P/E) are larger for banks with smaller risk committee. In particular, we find that the market valuation is negatively associated with the size of the risk committee and positively associated with the number of the risk committee’ meetings. This seems to suggest that the market discounts as favorable the information related to “strong” risk governance.

Keywords: Corporate Governance; Audit Committee; Board Size; Bank Performance; Risk Governance (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (3)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:csrchp:978-3-642-44955-0_4

Ordering information: This item can be ordered from
http://www.springer.com/9783642449550

DOI: 10.1007/978-3-642-44955-0_4

Access Statistics for this chapter

More chapters in CSR, Sustainability, Ethics & Governance from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().