Does board effectiveness matter for bank performance? Evidence from India Online publication date: Fri, 15-May-2020
by Madhur Bhatia; Rachita Gulati
International Journal of Comparative Management (IJCM), Vol. 3, No. 1/2, 2020
Abstract: This study examines the impact of board effectiveness on bank performance over the period 2005/06 to 2016/17. An attempt is made to assess the link, both at aggregate level using board effectiveness index, and at disaggregate level, by exploring the effect of board composition, board structure, board activity, and board independence separately, on bank performance in India. The board's influence on the performance of public and private bank groups is also explored. The econometric results obtained using bias-corrected least squares dummy variable approach suggest that overall board effectiveness does seem to have an impact on the performance of public sector banks, while only board composition significantly explains performance of private banks in India. At disaggregated level, the CEO duality, female directors, and trained independent directors on board exert a positive impact on the bank performance. Finally, the nominee directors exert a negative influence on the performance of private banks.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Comparative Management (IJCM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook