Board Composition and Firm Performance in the Banking Industry
Abstract
This study examines the effect of independent board members on a bank's performance. Roughly 100 banks in the SIC codes of 6020, 6022, 6035, 6036 were used, with data from the year 2003. Several governance variables were also included in this study; they are CEO/Chair duality, management ownership, insider tenure and total assets. P-B, ROA, ROE and ROI measured financial performance.
The effect of outside directors was insignificant. However, the results indicated that bank size positively affects how well outsiders on the board monitor the company. Also, this study suggests that management's ownership of the company increases short term performance, while insider tenure decreases it.
Notes
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Thesis Completion
2006
Semester
Spring
Advisor
Choi, Yoon K.
Degree
Bachelor of Science (B.S.)
College
College of Business Administration
Degree Program
Finance
Subjects
Business Administration -- Dissertations, Academic; Dissertations, Academic -- Business Administration
Format
Identifier
DP0022101
Language
English
Access Status
Open Access
Length of Campus-only Access
None
Document Type
Honors in the Major Thesis
Recommended Citation
Schermond, Katherine, "Board Composition and Firm Performance in the Banking Industry" (2006). HIM 1990-2015. 554.
https://stars.library.ucf.edu/honorstheses1990-2015/554