Title: Board characteristics and performance of Indian banks

Authors: Sangeeta D. Misra

Addresses: Indian Institute of Management, Prabandh Nagar, Off Sitapur Road, Lucknow – 226013, India

Abstract: This paper aims at investigating the impact of variables explaining board characteristics of Indian banks on their performance. Forty eight Indian banks, covering the time period from 2008-2009 to 2017-2018 have been included in the sample. The variables explaining board characteristics of Indian banks which have been included are board size, CEO duality, board independence, gender diversity, age and tenure of the CEO and the chairperson. After incorporating other bank specific variables such as net interest margin, burden ratio, bank capital, liquidity, size, loan quality and macroeconomic variables such as economic growth and inflation, the results show that banks with female CEOs, younger CEOs and CEOs with larger tenures perform better than banks with male CEOs, older CEOs and CEOs with smaller tenures. The other variables representing board characteristics which have come out to be significant determinants of bank performance are board size and tenure of chairperson of the board.

Keywords: return on assets; corporate governance; board characteristics; CEO; performance.

DOI: 10.1504/IJICBM.2020.110454

International Journal of Indian Culture and Business Management, 2020 Vol.21 No.3, pp.369 - 392

Received: 26 Apr 2019
Accepted: 27 Jul 2019
Published online: 20 Oct 2020 *

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