Board Composition, Monitoring and Credit Risk: Evidence from the UK Banking

Lu, Lucy (Jia) and Boateng, Agyenim (2018) Board Composition, Monitoring and Credit Risk: Evidence from the UK Banking. Review of Quantitative Finance and Accounting, 51 (4). pp. 1107-1128. ISSN 0924865X (Accepted for Publication)

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This paper examines the effects of board composition and monitoring on the credit risk in the UK banking sector. The study finds CEO duality, pay and board independence to have a positive and significant effect on credit risk of the UK banks. However, board size and women on board have a negative and significant influence on credit risk. Further analysis using sub-samples divided into pre-financial crisis, during the financial crisis and post crisis reinforce the robustness of our findings. Overall, the paper sheds light on the effectiveness of the within-firm monitoring arrangement, particularly, the effects of CEO power and board independence on credit risk decisions thereby contributing to the agency theory.

Item Type: Article
Additional Information and Comments: The final publication is available at
Faculty / Department: Faculty of Arts & Humanities > Business School
Depositing User: Lucy Lu
Date Deposited: 29 Oct 2018 13:53
Last Modified: 29 Oct 2018 13:53

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