Does the Board Structure Affect the Asset Quality of the Banks? Evidence from India-Reference-Cited by-同舟云学术

Does the Board Structure Affect the Asset Quality of the Banks? Evidence from India

Published:2018-05-23 Issue:2 Volume:7 Page:122-131
ISSN:2277-9752
Container-title:IIM Kozhikode Society & Management Review
language:en
Short-container-title:IIM Kozhikode Society & Management Review

Author:

Gafoor C. P. Abdul¹,Mariappan V.¹,Thiyagarajan S.²

Affiliation:

1. Department of Banking Technology, School of Management, Pondicherry University, Pondicherry, India.

2. Department of International Business, School of Management, Pondicherry University, Pondicherry, India.

Abstract

The Office of the Comptroller of the Currency (OCC) argue that poor asset quality is an outcome of the failure of bank boards in effectively monitoring the management in terms of loan policies and compliance. The current study explores the influence of board structure (board size, board independence, CEO duality, financial expertise and board meeting) on asset quality of banks, using a sample of 36 scheduled commercial banks operating in India during the period from 2001 to 2014. After addressing the issue of endogeneity, the study finds that the proportions of independent directors and financial experts have significant positive impact on asset quality. It also concludes that board size, number of board meetings and CEO duality have no significant impact on asset quality.

Publisher

SAGE Publications

Subject

General Medicine

Link

http://journals.sagepub.com/doi/pdf/10.1177/2277975218767564

Reference39 articles.

1. Bank board structure and performance: Evidence for large bank holding companies

2. Risk management, corporate governance, and bank performance in the financial crisis

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