Bank board structure and performance: Evidence for large bank holding companies

Journal of Financial Intermediation

Volumn 21, Issue 2, 2012, Pages 243-267

  Adams, Renée B ^a   Mehran, Hamid ^b  

^a UNIVERSITY OF QUEENSLAND   (Australia)

^b FEDERAL RESERVE BANK OF NEW YORK   (United States)

Author keywords

Banking industry; Board structure; Complexity; Corporate Governance; Holding company

Indexed keywords

EID: 84857048929     PISSN: 10429573     EISSN: 10960473     Source Type: Journal    
DOI: 10.1016/j.jfi.2011.09.002     Document Type: Article

References (46)

1. Adams, Renée B., 2011. Governance and the Financial Crisis. Int. Rev. Finance.
2. Adams Renée B. Governance of Banking Institutions. Corporate Governance 2010, Wiley & Sons, (Chapter 23). R. Anderson, H.K. Baker (Eds.).
3. Adams, Renée B., Daniel, Ferreira, 2011. Does Regulatory Pressure Provide Sufficient Incentives for Bank Directors? Evidence from Directors' Attendance Records. Int. Rev. Finance.
4. Adams Renée B., Ferreira Daniel A theory of friendly boards. J. Finance 2007, 62(1):217-250.
5. Adams R., Mehran H. Is corporate governance different for bank holding companies?. Econ. Pol. Rev. 2003, 9:123-142.
6. Barth James R., Caprio Gerard, Ross Levine Bank regulation and supervision: what works best?. J. Finan. Intermediation 2004, 13(2):205-248.
7. Bliss Richard T., Rosen Richard J. CEO compensation and bank mergers. J. Finan. Econ. 2001, 61(1):107-138.
8. Boone A., Field L., Karpoff J., Raheja C. The determinants of corporate board size and composition: An empirical analysis. J. Finan. Econ. 2008, 85(1):66-101.
9. Booth James R., Cornett Marcia Millon, Hassan Tehranian Boards of directors, ownership, and regulation. J. Banking Finance 2002, 26:1973-1996.
10. Boyd J., Runkle D. Size and performance of banking firms. J. Monet. Econ. 1993, 31:47-67.
11. Brewer III, E., Jackson III, W., Jagtiani, J., 2000. Impact of independent directors and the regulatory environment on bank merger prices: evidence from takeover activity in the 1990s. Federal Reserve Bank of Chicago Emerging Issues, December Issue.
12. Brick I., Palmon O., Wald J. CEO compensation, director compensation, and firm performance: evidence of cronyism?. J. Corp. Finan. 2006, 12(3):403-423.
13. Brickley J., James C. The takeover market, corporate board composition and ownership structure. J. Law Econ. 1987, 30:161-180.
14. Byrd, J., Fraser, D., Lee, D., Williams, T., 2001. Financial crises, natural selection and governance structure: evidence from the thrift crisis. Working paper, Texas A& M University.
15. Caprio Gerard, Luc Laeven, Ross Levine Governance and bank valuation. J. Finan. Intermediation 2007, 16:584-617.
16. Coles Jeffrey L., Daniel Naveen D., Lalitha Naveen Boards: does one size fit all?. J. Finan. Econ. 2008, 87:329-356.
17. Dalton D., Daily C., Johnson J., Ellstrand A. Number of directors and financial performance: a meta-analysis. Acad. Manage. J. 1999, 42:674-686.
18. Eisenberg T., Sundgren S., Wells M. Larger board size and decreasing firm value in small firms. J. Finan. Econ. 1998, 48:35-54.
19. Federal Reserve Bank of Atlanta, 2002, The Director's Primer, third ed.
20. Felsenthal, Mark, 2009. Fed to meet bank execs on pay reviews. Reuters, Oct 30. http://www.reuters.com/article/newsOne/idUSTRE59U04I20091031.
21. Graham, John R., Sonali Hazarika, Krishnamoorthy Narasimhan, 2011. Corporate Governance, Debt, and Investment Policy during the Great Depression. Manage. Sci. forthcoming.
22. Hallock K. Reciprocally interlocking boards of directors and executive compensation. J. Finan. Quant. Anal. 1997, 32:331-344.
23. Harris Milton, Raviv Artur A theory of board control and size. Rev. Finan. Stud. 2008, 21:1797-1832.
24. Hermalin B., Weisbach M. Boards of directors as an endogenously-determined institution: a survey of the economic literature. Econ. Pol. Rev. 2003, 9:7-26.
25. Jensen M. The modern industrial revolution, exit, and the failure of internal control systems. J. Finance 1993, 48:831-880.
26. Jones Kenneth D., Critchfield Tim Consolidation in the US Banking Industry: is the "Long, Strange Trip" about to end?. FDIC Banking Rev. 2005, 17(4):31-61.
27. John Kose, Mehran Hamid, Qian Yiming Outside monitoring and CEO compensation in the banking industry. J. Corp. Finan. 2010, 16(4):383-399.
28. Kirkpatrick Grant The corporate governance lessons from the financial crisis. Finan. Markets Trends 2009, 96(1):52-81.
29. Klein A. Firm performance and board committee structure. J. Law Econ. 1998, 41:275-303.
30. Kole S., Lehn K. Deregulation and the adaptation of governance structure: the case of the US airline industry. J. Finan. Econ. 1999, 52:79-117.
31. Kroszner, Randall, Philip, E. Strahan, 2001. Throwing Good Money after Bad? Board Connections and Conflicts in Bank Lending. NBER Working Paper Series No. 8694.
32. Laeven Luc, Levine Ross Bank regulation, governance and risk-taking. J. Finan. Econ. 2009, 93(2):259-275.
33. Lehn Kenneth, Sukesh Patro, Mengxin Zhao. Determinants of the size and structure of corporate boards: 1935-2000. Finan. Manage. 2009, 38(4):747-780.
34. Linck James S., Netter Jeffry M., Yang Tina The determinants of board structure. J. Finan. Econ. 2008, 87:308-328.
35. McConnell J., Servaes H. Additional evidence on equity ownership and corporate value. J. Finan. Econ. 1990, 27:595-612.
36. Mehran H. Executive compensation structure, ownership and firm performance. J. Finan. Econ. 1995, 38:163-184.
37. Morck R., Shleifer A., Vishny R. Management ownership and market valuation: an empirical analysis. J. Finan. Econ. 1988, 20:293-315.
38. Penas Mari{dotless}́a Fabianam, Unal Haluk Gains in bank mergers: evidence from the bond markets. J. Finan. Econ. 2004, 74(1):149-179.
39. Pettigrew A. On studying managerial elites. Strategic Manage. J. 1992, 13:163-182.
40. Raheja Charu G. Determinants of board size and composition: a theory of corporate boards. J. Finan. Quant. Anal. 2005, 40:307-329.
41. Schranz Mary Takeovers improve firm performance: evidence from the banking industry. J. Pol. Econ. 1993, 101(2):299-326.
42. Staiger D., Stock L. Instrumental Variables Regression with Weak Instruments. Econometrica. 1997, 65:557-586.
43. Vafeas N. Board meeting frequency and firm performance. J. Finan. Econ. 1999, 53:113-142.
44. Walker, Sir David, 2009. A review of corporate governance in UK banks and other financial industry entities, Final recommendations, 26 November. http://www.hm-treasury.gov.uk/d/walker_review_261109.pdf.
45. Wulf J. Do CEOs of target firms trade power for premium? Evidence from mergers of equals. J. Law, Econ. Organ. 2004, 20:60-101.
46. Yermack D. Higher market valuation of companies with a small board of directors. J. Finan. Econ. 1996, 40:185-211.