| Summary: | In the context of China’s banking reform, whether the banking sector could adapt to the modern corporate governance system has become one of the key factors of the success. Among all the corporate governance mechanisms, the board of directors could play a unique and effective role in a complicated and changeable financial environment.
This paper evaluates a series of board characteristics and measures their influence on bank performance by sample analysis of 51 Chinese banks during the period of 2015-2019.
The empirical results reveal that board compensation and the board meeting have strong positive relation to the bank performance while the board size, director’s age and independent director appear to have no significant connection to ROA, and director’s age have comparatively weak negative association with the bank performance after controlling the bank size, debt-to-asset ratio, equity ratio and state-owned duality.
|