Analyzing the governance structure of French banking groups

Bouheni, Faten Ben; Cheffou, Abdoulkarim Idi; Jawadi, Fredj

doi:10.1016/j.ribaf.2017.05.016

Cited by 4 publications

(3 citation statements)

References 15 publications

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“…This indicates that the presence of independent directors enhances the market risks of Indian banks. This is in contrast to the findings of Minton et al (2014) and Ben Bouheni et al (2018), who had concluded that the PNED decreases the accounting risks of banks. Further, the control variable bank size has a positive and significant association with the market risks of banks, which illustrates that the larger banks are riskier as compared to their smaller counterparts.…”

Section: Resultscontrasting

confidence: 99%

“…Minton et al (2014) studied bank boards for the period 2003-2008 and established that financial expertise among independent directors had an adverse impact on bank risk-taking (proxied by both accounting and market measures of risks). Ben Bouheni et al (2018), in their examination of French banking groups for the period 2005-2011, stated that the independent directors in the banks' board had a positive influence on their risk-taking behavior. Boateng et al (2018) examined Chinese banks over the period 2003-2014, and concluded, that independent directors had an adverse influence on the credit risk of the sample banks.…”

Section: Literature Review Theoretical Framework and Development Of H...mentioning

confidence: 99%

“…A few studies have revealed the advantages of having non-executive directors in the boards of banks in terms of superior accounting performance (Kyereboah-Coleman and Biekpe, 2006), better decision-making (Pathan and Skully, 2010), higher willingness to take risks (Ben Bouheni et al , 2018) and reduction in creditors’ interference in the internal governance of banks (Lin and Chang, 2016). However, we did not come across any research work that has attempted to empirically test the influence of independent directors on the market risks of banks operating in India.…”

Section: Introductionmentioning

confidence: 99%

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Influence of independent directors on the market risks of Indian banks

Shukla

Narayanasamy

Ayyalusamy

et al. 2020

JABS

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Purpose The purpose of this paper is to empirically explore the influence of independent directors (non-executive directors) on the market risks of the Indian banks. Design/methodology/approach This paper is based on the data collected over a period of seven years (2009-2016) for a set of 29 Indian banks that are the constituents of the National Stock Exchange 500 Index. The data for independent directors of the sample banks are extracted from the annual reports of the banks, whereas the data relating to the dependent and control variables are compiled from the Ace equity and the Reserve Bank of India databases. The study uses the panel data method for analysis of the collected data for the sample banks. Findings This study concludes that independent directors increase the market risks for Indian banks (measured through equity beta). Originality/value This is, perhaps, the first paper to look into the impact of independent directors on the market risks of Indian banks. The policymakers and banks may need to be aware of the risk implications of the findings of the study in the Indian context, such that the independent directors enable their banks in reducing the market risks.

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Section: Resultscontrasting

confidence: 99%