Does diversity of bank board members affect performance and risk? Evidence from an emerging market - Archive ouverte HAL Accéder directement au contenu
Pré-Publication, Document De Travail Année :

Does diversity of bank board members affect performance and risk? Evidence from an emerging market

(1) , (1)
1

Résumé

This study investigates the influence of background diversity of bank board members on performance and risk. Using data from Indonesian banks from 2001 to 2011 covering 4200 individual year observations and 21 ethnic groups, we estimate the degree of diversity by considering various aspects (gender, citizenship, age, experience, tenure, ethnicity, nationality, education level and type) and find significant impacts on bank performance. On the whole, diversity is in general positively associated with performance except when it relates to ethnicity. It not only reduces performance per se but also increases risk. Female presence and professional diversity reduce risk but nationality and ethnicity diversities are associated with higher risk. Education diversity generally leads to higher income volatility and leverage risk. Our results are generally robust to various alternative performance measures, including risk adjusted returns, and estimation methods.
Fichier principal
Vignette du fichier
Setiyono_Tarazi_Board_Diversity_and_Performance_and_Risk_04Sept2014_1_.pdf (364.69 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

hal-01070988 , version 1 (02-10-2014)

Identifiants

  • HAL Id : hal-01070988 , version 1

Citer

Bowo Setiyono, Amine Tarazi. Does diversity of bank board members affect performance and risk? Evidence from an emerging market. 2014. ⟨hal-01070988⟩

Collections

UNILIM LAPE
420 Consultations
2815 Téléchargements

Partager

Gmail Facebook Twitter LinkedIn More