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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Abstract

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 https://link.springer.com/article/10.1007%2Fs11156-017-0698-x
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
URI: http://hira.hope.ac.uk/id/eprint/2638

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