Corporate board and default risk of financial firms

被引:14
|
作者
Garcia, C. Jose [1 ]
Herrero, Begona [1 ]
Morillas, Francisco [2 ]
机构
[1] Univ Valencia, Dept Corp Finance, Av Tarongers S-N, Valencia 46022, Spain
[2] Univ Valencia, Dept Appl Econ, Valencia, Spain
来源
关键词
Corporate board; default risk; distance to default; European banks; Merton model;
D O I
10.1080/1331677X.2021.1909490
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper analyses the impact of corporate board structure on default risk of European banking firms. We focus on four core aspects of boards that have been addressed in Directive 2013/36/EU to strengthen the corporate governance of banks: the size of boards, their independence, the participation of female directors and CEO duality. We employ panel data analysis to study the 109 European listed banks between 2002 and 2019. Default risk is estimated by Merton's (1974) distance to default. We take into account the presence of unobservable heterogeneity, simultaneity and dynamic endogeneity and estimate the model using the dynamic difference and dynamic system GMM methodologies. The results show that the size of the board influences banks' default risk. Furthermore, bank size, firm profitability and GDP also exert a considerable influence.
引用
收藏
页码:511 / 528
页数:18
相关论文
共 50 条
  • [21] Corporate Governance and Board Effectiveness in Maritime Firms
    Trond Randøy
    Jon Down
    Janinge Jenssen
    Maritime Economics & Logistics, 2003, 5 (1) : 40 - 54
  • [22] Corporate governance and default risk of firms cited in the SEC’s Accounting and Auditing Enforcement Releases
    Cao Z.
    Leng F.
    Feroz E.H.
    Davalos S.V.
    Review of Quantitative Finance and Accounting, 2015, 44 (1) : 113 - 138
  • [23] Operational Productivity, Corporate Social Performance, Financial Performance, and Risk in Manufacturing Firms
    Jacobs, Brian W.
    Kraude, Richard
    Narayanan, Sriram
    PRODUCTION AND OPERATIONS MANAGEMENT, 2016, 25 (12) : 2065 - 2085
  • [24] Two-tier corporate board structure, corporate governance reforms and financial performance of firms listed on the China stock market
    Takuriramunashe Famba
    Lloyd Chiriseri
    Grace Chituku-Dzimiro
    Ophias Kurauone
    SN Business & Economics, 4 (11):
  • [25] Does financial performance moderate the relationship between board attributes and corporate social responsibility in French firms?
    Dakhli, Anissa
    JOURNAL OF GLOBAL RESPONSIBILITY, 2021, 12 (04) : 373 - 399
  • [26] The impact of Islamic Financial Services Board Standard No. 3 on corporate governance of listed firms in Kuwait
    Garas S.
    Tessema A.
    Tee K.
    International Journal of Disclosure and Governance, 2017, 14 (3) : 251 - 263
  • [27] Managerial cash use, default, and corporate financial policies
    Arnold, Marc
    JOURNAL OF CORPORATE FINANCE, 2014, 27 : 305 - 325
  • [28] The impact of political connection and risk committee on corporate financial performance: evidence from financial firms in Malaysia
    Aldhamari, Redhwan
    Mohamad Nor, Mohamad Naimi
    Boudiab, Mourad
    Mas'ud, Abdulsalam
    CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY, 2020, 20 (07): : 1281 - 1305
  • [29] Diversity of the Board of Directors and Financial Performance of the Firms
    Arenas-Torres, Felipe
    Bustamante-Ubilla, Miguel
    Campos-Troncoso, Roberto
    SUSTAINABILITY, 2021, 13 (21)
  • [30] Green innovation and corporate default risk
    Safiullah, Md
    Phan, Dinh Hoang Bach
    Kabir, Md. Nurul
    JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY, 2024, 95