Board characteristics and Chinese bank performance

Qi Liang, Pisun Xu, Pornsit Jiraporn

Research output: Contribution to journalArticle

73 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)2953-2968
Number of pages16
JournalJournal of Banking and Finance
Volume37
Issue number8
DOIs
StatePublished - Aug 1 2013

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Board characteristics
Bank performance
Assets
China
Independent directors
Functioning
Board of directors
Proportion
Board size
Governance
Political connections

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

Liang, Qi ; Xu, Pisun ; Jiraporn, Pornsit. / Board characteristics and Chinese bank performance. In: Journal of Banking and Finance. 2013 ; Vol. 37, No. 8. pp. 2953-2968.
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Board characteristics and Chinese bank performance. / Liang, Qi; Xu, Pisun; Jiraporn, Pornsit.

In: Journal of Banking and Finance, Vol. 37, No. 8, 01.08.2013, p. 2953-2968.

Research output: Contribution to journalArticle

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