Influence of Board Size and Composition on Bank Performance: Case of Serbia
Actual Problems of Economics, No. 8, 2012
Posted: 26 Oct 2012
Date Written: October 25, 2012
Abstract
We investigate the relation between board structure (size and composition) and bank performance in 16 Serbian commercial banks with a dominant shareholder in 2006 2010. We analyze this relation using OLS regression analysis on an unbalanced panel dataset of 67 observations. We find no significant relation between proportion of independent directors on the board and bank performance. We find that bank profitability measured by ROA increases as the number of directors on a board decreases.
Keywords: commercial banks, dominant shareholder, board composition, board size, bank performance
JEL Classification: G21, G32, G34
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