Boards of banks

Ferreira, Daniel ORCID: 0000-0003-4590-8429, Kirchmaier, Tom ORCID: 0000-0002-8938-2206, Metzger, Daniel and Ye, Shiwei (2025) Boards of banks. Journal of Corporate Finance, 94. ISSN 0929-1199

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Abstract

Bank board directors are highly independent but possess limited prior banking experience. Using a sample of banks from 90 countries between 2000 and 2020, we find that country-specific characteristics explain most of the cross-sectional variation in bank board independence. In contrast, country characteristics have little explanatory power for boards’ banking experience. While we document evidence of international convergence in bank board independence, U.S. banks lag behind their global counterparts in director banking experience. The data suggest that country-specific laws and regulations primarily shape bank board composition through requirements for director independence.

Item Type:	Article
Additional Information:	© 2025 The Authors
Divisions:	Finance Centre for Economic Performance
Subjects:	H Social Sciences > HG Finance
JEL classification:	G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
Date Deposited:	14 Jul 2025 13:12
Last Modified:	19 Aug 2025 16:42
URI:	http://eprints.lse.ac.uk/id/eprint/128809

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