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

Abstract

Board size, Independent directors, Thailand, Fixed-effects, Panel data, Commercial banks, Performance,

Influence of board and ownership structure on bank profitability: evidence from South East Europe

“…Yermack (1996) finds a statistically significant negative relationship between BS and Tobin's Q of US industrial corporations. Stančić et al (2012) find a negative relationship between BS and profitability for a sample of banks operating in Serbia, while Pathan et al (2007) report similar result for sample of Thai banks. On the other hand, Dalton, Daily, Johnson, and Ellstrand (1999) suggest that larger boards may be beneficial because they increase the pool of expertise available to an organisation.…”

“…For example, Hermalin and Weisbach (2003) argue that excessive boards lead to problems of coordination, control and flexibility in decision-making. Many authors confirm this argument in their empirical investigations (Pathan et al, 2007;Stančić et al, 2012;Yermack, 1996). Yermack (1996) finds a statistically significant negative relationship between BS and Tobin's Q of US industrial corporations.…”

“…For example, Dahya et al (2008) and Durnev and Kim (2005) find that a strong board can offset the market value discount in firms with a dominant owner, much more in a country with weak, than in countries with strong, legal protection of investors. Bektas and Kaymak (2008) and Pathan, Skully, and Wickramanayake (2007) find significant positive relation between board independence and bank performance of Turkish and Thai banks, respectively. There are, nevertheless, studies (Adams & Mehran, 2008;Stančić et al, 2012) finding no significant relation between BC and bank performance.…”

“…We rely on some earlier studies of this relationship, including Stančić et al (2012), Bektas and Kaymak (2009) and Pathan et al (2007). Our dependent variable is ROA.…”

Pengaruh Corporate Governance Mechanism Terhadap Nilai Perusahaan Melalui Pertumbuhan, Profitabilitas Dan Kebijakan Dividen

“…Proporsi dewan komisaris independen diukur menggunakan indikator persentase anggota dewan komisaris dari luar perusahaan atas seluruh ukuran anggota dewan komisaris, sebagaimana digunakan oleh beberapa penelitiian sebelumnya seperti; Prasanna (2006);Tang (2007), Garg (2007); Pathan et al (2007); Javed dan Iqbal (2007). Nilai variabel boards independent (BDINDT) dihitung menggunakan rumus:…”