Board Size, Independence and Performance: An Analysis of Thai Banks

32 Pages Posted: 26 Feb 2008 Last revised: 22 Mar 2008

See all articles by Shams Pathan

Shams Pathan

University of Newcastle - Newcastle University Business School

Michael T. Skully

Monash University - Department of Banking and Finance; Financial Research Network (FIRN)

J. Wickramanayake

Monash University - Department of Accounting; Financial Research Network (FIRN)

Abstract

This study examines the impact of board size and independent directors on the performance of local commercial banks in Thailand. A panel fixed-effect in the individual regression model is used to examine this relationship over 1999-2003. The results showed a statistically significant negative relation between Thai banks' board size and their performances. In addition, a statistically significant positive relationship was found between the proportion of independent directors on the bank board and performance.

Keywords: Board size, independent directors, Thailand, fixed-effects, panel data, commercial banks, performance

JEL Classification: G21, G34, C13, C22

Suggested Citation

Pathan, Shams and Skully, Michael T. and Wickramanayake, Jayasinghe, Board Size, Independence and Performance: An Analysis of Thai Banks. Asia-Pacific Financial Markets, Vol. 14, No. 3, pp. 211-227, September 2007, Available at SSRN: https://ssrn.com/abstract=1097283

Shams Pathan

University of Newcastle - Newcastle University Business School ( email )

5 Barrack Road
Frederic Douglass Centre
NEWCASTLE UPON TYNE, NE4 5TG
United Kingdom

Michael T. Skully (Contact Author)

Monash University - Department of Banking and Finance ( email )

900 Dandenong Road
Caulfield East, Victoria 3145
Australia
+61 3 9903 2407 (Phone)
+61 3 9903 1443 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Jayasinghe Wickramanayake

Monash University - Department of Accounting ( email )

Building 11E
Clayton, Victoria 3800
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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