TY - JOUR
T1 - The effect of board size and composition on the efficiency of UK banks
AU - Tanna, Sailesh
AU - Pasiouras, Fotios
AU - Nnadi, Matthias
PY - 2011
Y1 - 2011
N2 - We examine a sample of 17 banking institutions operating in the UK between 2001 and 2006 to provide empirical evidence on the association between the efficiency of UK banks and board structure, namely board size and composition. Our approach is to use data envelopment analysis to estimate several measures of the efficiency of banks, and then to use panel data regressions for investigating the impact of board structure on efficiency. After controlling for bank size and capital strength, we find some evidence of a positive association between board size and efficiency, although this is not robust across all our specifications. Board composition, by contrast, has a robustly significant and positive impact on all measures of efficiency.
AB - We examine a sample of 17 banking institutions operating in the UK between 2001 and 2006 to provide empirical evidence on the association between the efficiency of UK banks and board structure, namely board size and composition. Our approach is to use data envelopment analysis to estimate several measures of the efficiency of banks, and then to use panel data regressions for investigating the impact of board structure on efficiency. After controlling for bank size and capital strength, we find some evidence of a positive association between board size and efficiency, although this is not robust across all our specifications. Board composition, by contrast, has a robustly significant and positive impact on all measures of efficiency.
UR - http://www.scopus.com/inward/record.url?scp=84859038785&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1080/13571516.2011.618617
U2 - 10.1080/13571516.2011.618617
DO - 10.1080/13571516.2011.618617
M3 - Article
SN - 1357-1516
VL - 18
SP - 441
EP - 462
JO - International Journal of the Economics of Business
JF - International Journal of the Economics of Business
IS - 3
ER -