Board characteristics and bank performance in India

C.P. Abdul Gafoor; V. Mariappan; S. Thyagarajan

IIMB Management Review (Jun 2018)

Board characteristics and bank performance in India

C.P. Abdul Gafoor,
V. Mariappan,
S. Thyagarajan

Affiliations

C.P. Abdul Gafoor: Department of Banking Technology, School of Management, Pondicherry University, Pondicherry 605014, India; Corresponding author. Tel.: +91 9443194969.
V. Mariappan: Department of Banking Technology, School of Management, Pondicherry University, Pondicherry 605014, India
S. Thyagarajan: Department of International Business, School of Management, Pondicherry University, Pondicherry 605014, India

Journal volume & issue: Vol. 30, no. 2
pp. 160 – 167

Abstract

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Using a sample of 36 scheduled commercial banks in India during the period of 2001–2014, we explore the impact of board structure characteristics such as board size, independence and CEO duality on bank performance. We find significant relationship between board size and bank performance when the board size is between 6 and 9. We also find positive and significant relationship between board independence and bank performance. Further, we find that the number of board meetings and a larger number of financial experts on the board are important for bank performance. However, we find no significant improvement in bank performance when the role of CEO and chairman is separated. Keywords: Board structure, Bank performance, Indian banking

Published in IIMB Management Review

ISSN: 0970-3896 (Print)
Publisher: Elsevier
Country of publisher: India
LCC subjects: Social Sciences: Commerce: Business
Website: http://www.journals.elsevier.com/iimb-management-review/

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