Financial experts on the board: does it matter for the profitability and risk of the u.k. banking industry?
Journal article
Authors | Apergis, Nicholas |
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Abstract | This paper explores the relation between board-level financial expertise, the profitability and the risk profile with panel data from the UK banking industry. The empirical findings document that collectively, financial experts have a positive influence on the performance outcomes of banks, they contribute to higher risks, especially in the case of large banks, while they improve the stock performance of the associated banks. Moreover, the results highlight that board-level qualified accountants have no statistical effect on that profitability, while such a positive link is established for the case of financial and banking professors, as well as for financial experts from other industries. Such findings imply that these two groups of professional financial experts may be easier adopted at group-level profits enhancement. Robustness checks confirm the results for all types of banking institutions, except those with a strong real-estate activity portfolio. Finally, certain commercial and/or policy implications of the results are reported. |
Keywords | Financial experts; UK banks; Bank profitability; Bank risk |
Year | 2019 |
Journal | Journal of Financial Research. |
Publisher | Wiley |
Web address (URL) | http://hdl.handle.net/10545/623382 |
http://creativecommons.org/licenses/by-nc-nd/4.0/ | |
hdl:10545/623382 | |
Publication dates | 13 Jan 2019 |
Publication process dates | |
Deposited | 25 Jan 2019, 16:33 |
Accepted | Nov 2018 |
Accepted | 28 Nov 2018 |
Contributors | University of Derby |
File | |
File | File Access Level Open |
File | File Access Level Open |
https://repository.derby.ac.uk/item/94656/financial-experts-on-the-board-does-it-matter-for-the-profitability-and-risk-of-the-u-k-banking-industry
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