Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India †
Abstract
:1. Introduction
2. Regulatory Structure and Governance Setup of Indian Banks
3. Data and Methods
3.1. Data
3.2. Empirical Methodology
dummies(it) + δ’*control variables(it) + ε(it)
3.2.1. Dependent Variable: Bank Outcomes
3.2.2. Variables of Interest: Board Characteristics and Ownership Dummies
3.2.3. Control Variables
3.3. Descriptive Statistics
4. Regression Results
4.1. Baseline Regression
4.2. Board Characteristics and Bank Outcomes
4.2.1. Board Characteristics and Bank Profitability
4.2.2. Board Characteristics and Bank Valuation
4.2.3. Endogeneity
4.2.4. Board Characteristics and Bank Asset Quality
4.3. Tenure of Chief Executive Officer and Bank Outcomes
5. Conclusions
Author Contributions
Conflicts of Interest
References
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1 | For a recent survey of the literature, see Adams et al. (2010). |
2 | The theoretical underpinnings of this finding stem from the argument that independent directors have competing demands on their time to be devoted to monitoring and advising functions. If greater time is devoted by independent directors to intense monitoring then it adversely impacts their ability to create firm value due to a variety of reasons including cutting down on time for advising activities, weakening the trust between CEOs and independent directors and discouraging the former from sharing strategic information with the latter for their advisory activities (Holmstrom 2005; Adams and Ferreira 2007). |
3 | |
4 | The Indian banking comprises of commercial banks and co-operative banks with commercial banks dominating the quantum of the banking business with a market share of more than 95% at the end of March 2012. Commercial banks in turn comprise of scheduled banks and non-scheduled banks with the former being subject to certain statutory requirements such as minimum paid-up capital. The number of non-scheduled banks has dwindled over the years and stands at four at present with scheduled commercial banks accounting for more than 97% of total commercial banking operations. |
5 | At the end of March 2012, the regional rural banks accounted for less than four per cent of total banking business of state-owned banks. |
6 | The new private banks were set up post 1991 at the time of liberalization of the Indian economy. These banks have since then grown rapidly compared to the old private banks. As on 31 March 2012, the deposit share of new private banks was 14 percent compared to the combined share of 11 percent of old private banks and foreign banks. |
7 | These relate to the Board of Directors, namely the inclusion of persons with professional and other experiences (10-A), the provision to have a whole-time chairman(10-B), the power of the RBI to appoint chairman of a Banking Company (10-BB), the chairman and managing director not to be required to hold qualification shares (10-C), the election of new directors (12-A), the power of RBI to remove managerial and other persons from office (36-AA) and the power of the RBI to appoint additional directors. |
8 | As the Nayak Committee (Nayak 2014) notes, the chairman and managing director of state-owned banks typically get appointed very close to their retirement age of 60, the tenure of most of the top executives do not exceed two years. |
9 | These banks together accounted for over 90% of the total deposits and total advances of the banking system in 2012. |
10 | Nominee directors are in addition to the independent directors that are appointed by the government by virtue of its equity ownership. |
11 | In using three as the cut-off for busy directors we apply the most conservative definition of busyness that has been used in several US studies. This rule of thumb largely follows the recommendation of the Council of Institutional Investors in the US. |
12 | While information on financial and stock market variables is relatively complete, data on board characteristics are missing due to non-filing of corporate governance reports by some banks especially in the early years of our sample. Accordingly, although we have potentially 460 bank year observations (46 banks × 10 years), our sample is an unbalanced panel of 267 bank-year observations. |
13 | Since the standard measures of assets quality all look at the proportion of non-performing assets rather than performing assets, a negative sign indicates better quality of assets. |
14 | We also interacted Boardsize with the two ownership dummy variables but none of the interaction coefficients were significant while the coefficient on Boardsize continued to remain insignificant. We do not report these results separately to conserve space. |
15 | We get the most number of observations for state-owned banks for this year during the period of (2003 to 2006). Also, new corporate governance reforms, especially with respect to board governance, came into effect from 1 January 2006 (SEBI Circular, (SEBI/CFD/DIL/CG/1/2005/29/3), 29 March 2005). |
Variable Name | Description |
---|---|
Roa | Rate of return on assets: PBDIT to total assets (%) |
Mbvr | Market to book value ratio: price to book value of equity (ratio) |
Nnpa_ttladv | Net non-performing assets to total loans and advances (%) |
Gnpa_ttladv | Gross non-performing assets to total loans and advances (%) |
Nnpa_additn_ttladv | Addition of net non-performing assets to total loans and advances (%) |
Gnpa_additn_ttladv | Addition of gross non-performing assets to total loans and advances (%) |
Boardsize | Board size: number of directors on the board |
Board Independence | Board independence: percentage of independent directors on the board |
Busy Director | Dummy variable, equals 1 if board has at least one director with three or more directorships |
Director Attendance | Percentage of independent directors who attended the AGM |
Ceo Duality | Dummy variable, equals 1 if the same person holds the position of CEO and chairman |
Nominee Director | Dummy variable, equals 1 if the board has a nominee director |
Oprivate | Dummy variable, equals 1 for old private banks |
Nprivate | Dummy variable, equals 1 for new private banks |
Loans to Assets | Percentage of loans and advances to total assets |
Log Assets | Log of total assets |
Priority Sector Lending | Percentage of priority sector lending to total loans and advances |
Ceo Tenure | Tenure of the chief executive office in years |
Trend Nnpa_wrtoffs_ttladv Gnpa_wrtoffs_ttladv Npa_provsn_ttladv | Trend variable takes the value 1 for the first year of the sample, 2 for the second year and so on Write offs of net non-performing assets to total loans and advances (%) Write offs of gross non-performing assets to total loans and advances (%) Provisions for non-performing assets to total loans and advances (%) |
Ownership Groups | |||||
---|---|---|---|---|---|
State-Owned | Old Private | New Private | All | ||
Panel A: Bank Outcomes and Bank Characteristics | |||||
Roa | Mean | 1.00 | 1.11 | 1.29 | 1.09 |
Median | 1.01 | 1.15 | 1.45 | 1.10 | |
Mbvr | Mean | 1.13 | 1.24 | 3.06 | 1.58 |
Median | 1.09 | 1.28 | 2.87 | 1.26 | |
Nnpa_ttladv | Mean | 1.28 | 1.19 | 0.91 | 1.18 |
Median | 1.07 | 1.07 | 0.61 | 0.96 | |
Gnpa_ttladv | Mean | 3.30 | 3.34 | 2.30 | 3.09 |
Median | 2.50 | 2.54 | 1.57 | 2.36 | |
Nnpa_additn_ttladv | Mean | 1.06 | 1.12 | 0.67 | 0.98 |
Median | 0.98 | 1.10 | 0.47 | 0.86 | |
Gnpa_additn_ttladv | Mean | 1.94 | 1.63 | 1.78 | 1.84 |
Median | 1.75 | 1.54 | 1.27 | 1.62 | |
Loans to Assets | Mean | 58.28 | 56.99 | 54.27 | 57.12 |
Median | 59.92 | 58.09 | 55.97 | 58.32 | |
Log Assets | Mean | 13.84 | 12.35 | 13.20 | 13.39 |
Median | 13.79 | 12.34 | 13.15 | 13.38 | |
Priority Sector Lending | Mean | 37.27 | 36.50 | 34.77 | 36.56 |
Median | 37.01 | 37.99 | 34.88 | 36.69 | |
Panel B: Board Characteristics | |||||
Boardsize | Mean | 8.08 | 9.95 | 11.14 | 9.14 |
Median | 8.00 | 10.00 | 11.00 | 9.00 | |
Board Independence | Mean | 54.79 | 68.29 | 64.70 | 59.76 |
Median | 58.33 | 75.00 | 66.67 | 62.50 | |
Busy Director | Mean | 0.55 | 0.71 | 1.00 | 0.68 |
Median | 1.00 | 1.00 | 1.00 | 1.00 | |
Director Attendance | Mean | 43.04 | 81.97 | 63.34 | 57.53 |
Median | 50.00 | 84.52 | 60.00 | 60.00 | |
Ceo Duality | Mean | 0.90 | 0.51 | 0.12 | 0.64 |
Median | 1.00 | 1.00 | 0.00 | 1.00 | |
Nominee Director | Mean | 0.98 | 0.11 | 0.27 | 0.64 |
Median | 1.00 | 0.00 | 0.00 | 1.00 | |
Sample Size * | N | 153 | 55 | 59 | 267 |
Dependent Variable | ||||||
---|---|---|---|---|---|---|
Financial Performance | Asset Quality | |||||
Roa | Mbvr | Nnpa_ttladv | Gnpa_ttladv | Nnpa_additn_ttladv | Gnpa_additn_ttladv | |
Intercept | −1.586 ** | −2.813 ** | 1.712 | −0.615 | 0.600 | 3.780 ** |
(0.018) | (0.011) | (0.213) | (0.832) | (0.575) | (0.017) | |
Oprivate | 0.310 *** | 0.401 *** | −0.187 | −0.037 | 0.094 | −0.501 ** |
(0.001) | (0.006) | (0.304) | (0.923) | (0.506) | (0.017) | |
Nprivate | 0.410 *** | 2.157 *** | −0.432 *** | −0.773 ** | −0.381 *** | −0.298 * |
(0.001) | (0.001) | (0.005) | (0.016) | (0.001) | (0.088) | |
Log Assets | 0.141 *** | 0.182 *** | 0.002 | 0.081 | 0.042 | −0.098 |
(0.001) | (0.004) | (0.981) | (0.622) | (0.491) | (0.278) | |
Loans to Assets | 0.012 * | 0.025 ** | −0.002 | −0.124 *** | 0.005 | 0.003 |
(0.100) | (0.047) | (0.889) | (0.000) | (0.671) | (0.857) | |
Priority Sector Lending | 0.017 *** | 0.031 *** | 0.007 | 0.055 ** | 0.003 | −0.005 |
(0.002) | (0.001) | (0.547) | (0.023) | (0.776) | (0.699) | |
Year Effects | Yes | Yes | Yes | Yes | Yes | Yes |
No. of Obs. | 267 | 267 | 267 | 267 | 267 | 267 |
Adj. R2 | 0.13 | 0.60 | 0.25 | 0.44 | 0.13 | 0.10 |
Pr. > F | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 |
Column | Column | Column | Column | Column | |
---|---|---|---|---|---|
(i) | (ii) | (iii) | (iv) | (v) | |
Intercept | −1.300 ** | −1.268 * | −0.571 | −0.440 | −0.918 |
(0.054) | (0.060) | (0.427) | (0.542) | (0.201) | |
Boardsize | −0.010 | −0.006 | −0.015 | −0.022 * | −0.018 |
(0.352) | (0.580) | (0.195) | (0.062) | (0.122) | |
Board Independence | −0.001 | −0.001 | −0.002 | −0.001 | 0.001 |
(0.370) | (0.474) | (0.297) | (0.910) | (0.426) | |
Board Independence x Oprivate | 0.005 *** | 0.005 *** | 0.005 *** | 0.004 ** | 0.004 ** |
(0.001) | (0.001) | (0.001) | (0.003) | (0.003) | |
Board Independence x Nprivate | 0.006 *** | 0.006 *** | 0.007 *** | 0.004 ** | 0.006 *** |
(0.001) | (0.001) | (0.001) | (0.025) | (0.001) | |
Busy Director | −0.102 | −0.069 | −0.097 | −0.122 * | |
(0.120) | (0.318) | (0.164) | (0.075) | ||
Director Attendance | −0.001 | −0.001 | −0.002 | ||
(0.479) | (0.287) | (0.163) | |||
Ceo Duality | −0.298 ** | −0.236 ** | |||
(0.013) | (0.045) | ||||
Ceo Duality x Oprivate | 0.451 *** | 0.393 *** | |||
(0.007) | (0.014) | ||||
Ceo Duality x Nprivate | 0.288 ** | 0.440 ** | |||
(0.041) | (0.035) | ||||
Nominee Director | −0.367 *** | ||||
(0.001) | |||||
Loans to Assets | 0.011 | 0.011 | 0.015 * | 0.015 * | 0.014 * |
(0.147) | (0.147) | (0.083) | (0.077) | (0.086) | |
Log Assets | 0.133 *** | 0.134 *** | 0.094 ** | 0.106 *** | 0.155 *** |
(0.001) | (0.001) | (0.020) | (0.001) | (0.001) | |
Priority Sector Lending | 0.017 *** | 0.016 *** | 0.016 *** | 0.015 ** | 0.014 ** |
(0.001) | (0.006) | (0.010) | (0.013) | (0.020) | |
Year Effects | Yes | Yes | Yes | Yes | Yes |
No. of Obs. | 267 | 267 | 225 | 225 | 225 |
Adj. R2 | 0.11 | 0.11 | 0.16 | 0.18 | 0.22 |
Pr. > F | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 |
Column | Column | Column | Column | Column | |
---|---|---|---|---|---|
(i) | (ii) | (iii) | (iv) | (v) | |
Intercept | 0.007 | −0.070 | −0.326 | 0.115 | −0.570 |
(0.995) | (0.954) | (0.813) | (0.933) | (0.677) | |
Boardsize | 0.009 | −0.001 | −0.013 | −0.035 | −0.029 |
(0.652) | (0.978) | (0.565) | (0.111) | (0.181) | |
Board Independence | −0.013 *** | −0.014 *** | −0.016 *** | −0.013 *** | −0.011 *** |
(0.001) | (0.001) | (0.001) | (0.001) | (0.002) | |
Board Independence x Oprivate | 0.005 * | 0.004 * | 0.003 | −0.003 | −0.007 * |
(0.058) | (0.058) | (0.296) | (0.398) | (0.076) | |
Board Independence x Nprivate | 0.030 *** | 0.029 *** | 0.030 *** | 0.021 *** | 0.016 *** |
(0.001) | (0.001) | (0.001) | (0.001) | (0.001) | |
Busy Director | 0.242 ** | 0.181 | 0.085 | 0.049 | |
(0.040) | (0.172) | (0.518) | (0.707) | ||
Director Attendance | 0.005 ** | 0.003 | 0.003 | ||
(0.044) | (0.116) | (0.175) | |||
Ceo Duality | −0.801 *** | −0.712 *** | |||
(0.001) | (0.002) | ||||
Ceo Duality x Oprivate | 0.478 | 0.396 | |||
(0.124) | (0.199) | ||||
Ceo Duality x Nprivate | 0.594 ** | 0.811 ** | |||
(0.038) | (0.042) | ||||
Nominee Director | −0.525 ** | ||||
(0.012) | |||||
Loans to Assets | 0.005 | 0.005 | −0.016 | −0.019 | −0.020 |
(0.707) | (0.704) | (0.324) | (0.240) | (0.207) | |
Log Assets | 0.051 | 0.049 | 0.054 | 0.085 | 0.155 * |
(0.457) | (0.476) | (0.490) | (0.268) | (0.055) | |
Priority Sector Lending | 0.025 ** | 0.028 *** | 0.038 *** | 0.033 *** | 0.031 *** |
(0.014) | (0.007) | (0.002) | (0.004) | (0.006) | |
Year Effects | Yes | Yes | Yes | Yes | Yes |
No. of Obs. | 267 | 267 | 225 | 225 | 225 |
Adj. R2 | 0.51 | 0.51 | 0.56 | 0.58 | 0.59 |
Pr. > F | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 |
Dependent Variable | ||||
---|---|---|---|---|
Nnpa_ttladv | Gnpa_ttladv | Nnpa_additn_ttladv | Gnpa_additin_Ttladv | |
Intercept | −0.483 | −6.788 | 0.715 | 2.145 |
(0.730) | (0.013) | (0.571) | (0.242) | |
Boardsize | 0.015 | −0.008 | 0.015 | −0.007 |
(0.488) | (0.848) | (0.472) | (0.810) | |
Board Independence | 0.003 | 0.020 | −0.006 * | 0.001 |
(0.424) | (0.003) | (0.060) | (0.977) | |
Board Independence x Oprivate | 0.003 | 0.012 | 0.008 ** | 0.004 |
(0.472) | (0.162) | (0.043) | (0.485) | |
Board Independence x Nprivate | 0.001 | −0.001 | 0.001 | 0.007 |
(0.908) | (0.934) | (0.748) | (0.197) | |
Busy Director | 0.133 | 0.181 | 0.183 | 0.210 |
(0.314) | (0.483) | (0.127) | (0.228) | |
Director Attendance | 0.001 | −0.001 | 0.003 | 0.004 |
(0.898) | (0.817) | (0.200) | (0.212) | |
Ceo Duality | 0.126 | 0.650 | 0.173 | 0.165 |
(0.581) | (0.144) | (0.402) | (0.581) | |
Ceo Duality x Oprivate | 0.124 | −0.208 | −0.221 | −0.177 |
(0.692) | (0.733) | (0.436) | (0.667) | |
Ceo Duality x Nprivate | −0.718 * | −2.168 *** | −0.596 | −1.087 ** |
(0.076) | (0.006) | (0.104) | (0.041) | |
Nominee Director | 0.358 * | −0.217 | 0.470 ** | 0.815 *** |
(0.089) | (0.597) | (0.014) | (0.004) | |
Loans to Assets | 0.011 | −0.062 ** | −0.012 | 0.010 |
(0.485) | (0.048) | (0.402) | (0.624) | |
Log Assets | 0.064 | −0.437 *** | −0.017 | −0.087 |
(0.431) | (0.007) | (0.824) | (0.419) | |
Priority Sector Lending | 0.004 | 0.037 * | 0.005 | 0.003 |
(0.707) | (0.099) | (0.660) | (0.835) | |
Year Effects | Yes | Yes | Yes | Yes |
No. of Obs. | 225 | 225 | 225 | 225 |
Adj. R2 | 0.20 | 0.46 | 0.12 | 0.08 |
Pr. > F | 0.001 | 0.001 | 0.001 | 0.001 |
Ownership Group | No. of CEO Changes | Distribution of CEOs by Tenure (in Years) | ||||||
---|---|---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | >5 | Average Tenure | ||
State-owned Banks | 93 | 28 | 20 | 21 | 13 | 5 | 6 | 2.65 |
(30.11) | (21.51) | (22.58) | (13.98) | (5.38) | (6.46) | |||
Old Private Banks | 40 | 14 | 6 | 9 | 4 | 1 | 6 | 2.90 |
(35.00) | (15.00) | (22.50) | (10.00) | (2.50) | (15.00) | |||
New Private Banks | 11 | 0 | 1 | 3 | 1 | 0 | 6 | 6.25 |
(0.00) | (9.09) | (27.27) | (9.09) | (0.00) | (54.55) | |||
Total | 144 | 32 | 27 | 33 | 18 | 6 | 18 | 2.99 |
(22.22) | (18.75) | (22.92) | (12.50) | (4.17) | (4.86) |
Performance Measures | Asset Quality Measures | ||||||||
---|---|---|---|---|---|---|---|---|---|
Roa | Mbvr | Nnpa_ | Gnpa_ | Nnpa_ | Gnpa_ | Nnpa_ | Gnpa_ | Npa_ | |
ttladv | ttladv | wrtoffs_ | wrtoffs_ | additn_ | additn_ | provsn_ | |||
ttladv | ttladv | ttladv | ttladv | ttladv | |||||
Intercept | −0.175 | −0.634 | 8.980 *** | 28.887 *** | 3.535 *** | 9.012 *** | 3.284 *** | 5.080 *** | 14.279 *** |
(0.576) | (0.210) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | |
Ceo Tenure | 0.050 *** | 0.205 *** | −0.137 *** | −0.273 *** | −0.102 *** | −0.102 *** | −0.086 *** | −0.077 *** | −0.069 |
(0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.003) | (0.154) | |
Trend | −0.008 | −0.011 | −0.187 *** | −0.631 *** | −0.131 *** | −0.141 *** | −0.031 * | −0.072 *** | −0.290 *** |
(0.369) | (0.475) | (0.001) | (0.001) | (0.001) | (0.001) | (0.054) | (0.001) | (0.001) | |
Loans to Assets | 0.001 | 0.004 | −0.083 *** | −0.328 *** | −0.080 *** | −0.074 *** | −0.033 *** | −0.040 ** | −0.170 *** |
(0.792) | (0.667) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.002) | (0.001) | |
Log Assets | 0.057 | 0.081 ** | −0.245 *** | −1.021 *** | −0.089 ** | −0.304 *** | −0.076 *** | −0.075 | −0.488 *** |
(0.007) | (0.018) | (0.001) | (0.001) | 0.065 | (0.001) | (0.037) | 0.122 | (0.001) | |
Priority Sector Lending | 0.010 ** | 0.010 | −0.062 *** | −0.149 *** | 0.009 | −0.046 *** | −0.007 ** | −0.035 *** | −0.085 *** |
(0.011) | (0.104) | (0.001) | (0.001) | 0.305 | (0.001) | (0.012) | (0.001) | (0.001) | |
Number of Observations | 438 | 438 | 438 | 438 | 438 | 438 | 438 | 438 | 438 |
Adj. R2 | 0.06 | 0.24 | 0.28 | 0.35 | 0.17 | 0.20 | 0.08 | 0.08 | 0.24 |
Pr. > F | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 |
Performance Measures | Asset Quality Measures | ||||||||
---|---|---|---|---|---|---|---|---|---|
Roa | Mbvr | Nnpa_ | Gnpa_ | Nnpa | Gnpa_ | Nnpa_ | Gnpa_ | Npa_ | |
Ttladv | ttladv | wrtoffs_ | wrtoffs_ | additn_ | additn_ | provsn_ | |||
ttladv | ttladv | ttladv | ttladv | ttladv | |||||
Intercept | −0.178 | −0.643 | 9.069 *** | 29.161 *** | 3.587 *** | 9.147 *** | 3.309 *** | 5.153 *** | 14.382 *** |
(0.569) | (0.230) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | |
Ceo Tenure—Year 2 | −0.056 | 0.116 | −0.394 ** | −1.039 ** | −0.118 | −0.380 * | −0.031 | −0.086 | −0.235 |
(0.436) | (0.344) | (0.034) | (0.046) | (0.480) | (0.055) | (0.804) | (0.605) | (0.449) | |
Ceo Tenure—Year 3 | −0.116 | 0.237 | −0.546 *** | −1.477 *** | −0.236 | −0.519 ** | −0.119 | −0.118 | −0.278 |
(0.142) | (0.080) | (0.008) | (0.010) | (0.197) | (0.017) | (0.386) | (0.519) | (0.416) | |
Ceo Tenure—Year 4 | 0.002 | 0.388 ** | −0.777 *** | −1.701 ** | −0.327 | −0.626 ** | −0.179 | −0.189 | −0.147 |
(0.980) | (0.020) | (0.002) | (0.017) | (0.147) | (0.020) | (0.290) | (0.400) | (0.727) | |
Ceo Tenure—Years ≥ 5 | 0.304 *** | 1.136 *** | −1.061 *** | −2.337 *** | −0.737 *** | −0.982 *** | −0.562 *** | −0.648 *** | −0.607 * |
(0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.081) | |
Trend | −0.008 | −0.006 | −0.187 *** | −0.627 *** | −0.131 *** | −0.137 *** | −0.031 * | −0.070 *** | −0.289 *** |
(0.393) | (0.726) | (0.001) | (0.001) | (0.001) | (0.001) | (0.052) | (0.001) | (0.001) | |
Loans to Assets | 0.001 | −0.004 | −0.078 *** | −0.317 *** | −0.077 *** | −0.071 *** | −0.030 *** | −0.039 *** | −0.169 *** |
(0.862) | (0.711) | (0.001) | (0.001) | (0.001) | (0.001) | (0.002) | (0.002) | (0.001) | |
Log Assets | 0.063 *** | 0.098 *** | −0.252 *** | −1.033 *** | −0.097 ** | −0.309 *** | −0.083 ** | −0.082 * | −0.493 *** |
(0.003) | (0.006) | (0.001) | (0.001) | (0.045) | (0.001) | (0.022) | (0.090) | (0.001) | |
Priority Sector Lending | 0.011 *** | 0.011 * | −0.061 *** | −0.146 *** | 0.008 | −0.045 *** | −0.017 *** | −0.036 *** | −0.085 *** |
(0.004) | (0.093) | (0.001) | (0.001) | (0.342) | (0.001) | (0.010) | (0.001) | (0.001) | |
Number of Observations | 438 | 438 | 438 | 438 | 438 | 438 | 438 | 438 | 438 |
Adj. R2 | 0.07 | 0.15 | 0.29 | 0.36 | 0.17 | 0.22 | 0.07 | 0.08 | 0.24 |
Pr. > F | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 |
Performance Measures | Asset Quality Measures | ||||||||
---|---|---|---|---|---|---|---|---|---|
Roa | Mbvr | Nnpa_ | Gnpa_ | Nnpa | Gnpa_ | Nnpa_ | Gnpa_ | Npa_ | |
ttladv | ttladv | wrtoffs_ | wrtoffs_ | additn_ | additn_ | provsn_ | |||
ttladv | ttladv | ttladv | ttladv | ttladv | |||||
Intercept | −0.930 ** | −0.729 | 9.909 *** | 32.940 *** | 3.732 *** | 10.647 *** | 3.937 *** | 6.540 *** | 17.198 |
(0.011) | (0.161) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | |
Ceo Tenure | −0.029 | −0.034 | −0.078 | 0.120 | −0.036 | −0.006 | 0.006 | 0.008 | 0.256 *** |
(0.211) | (0.307) | (0.197) | (0.476) | (0.500) | (0.931) | (0.876) | (0.878) | (0.010) | |
Ceo Tenure x Oprivate | 0.102 *** | 0.041 | −0.121 | −0.546 *** | −0.032 | −0.213 *** | −0.092 ** | −0.190 *** | −0.400 *** |
(0.001) | (0.260) | (0.069) | (0.004) | (0.586) | (0.003) | (0.039) | (0.001) | (0.001) | |
Ceo Tenure x Nprivate | 0.075 *** | 0.291 *** | −0.045 | −0.362 ** | −0.075 | −0.070 | −0.094 *** | −0.060 | −0.312 *** |
(0.001) | (0.001) | (0.409) | (0.019) | (0.125) | (0.232) | (0.010) | (0.212) | (0.001) | |
Trend | −0.018 * | 0.013 | −0.172 *** | −0.578 *** | −0.134 *** | −0.112 *** | −0.026 | −0.046 ** | −0.256 *** |
(0.070) | (0.371) | (0.001) | (0.001) | (0.001) | (0.001) | (0.132) | (0.042) | (0.001) | |
Loans to Assets | 0.005 | 0.024 *** | −0.090 *** | −0.362 *** | −0.088 *** | −0.079 *** | −0.040 *** | −0.043 *** | −0.721 *** |
(0.343) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | |
Log Assets | 0.118 *** | 0.072 * | −0.322 *** | −1.350 *** | −0.102 | −0.441 *** | −0.127 *** | −0.197 *** | −0.194 *** |
(0.001) | (0.053) | (0.001) | (0.001) | (0.094) | (0.001) | (0.005) | (0.001) | (0.001) | |
Priority Sector Lending | 0.013 *** | 0.021 *** | −0.064 *** | −0.166 *** | 0.006 | −0.050 *** | −0.021 *** | −0.038 *** | −0.099 *** |
(0.001) | (0.001) | (0.001) | (0.001) | (0.508) | (0.001) | (0.002) | (0.001) | (0.001) | |
Number of Observations | 438 | 438 | 438 | 438 | 438 | 438 | 438 | 438 | 438 |
Adj. R2 | 0.10 | 0.42 | 0.29 | 0.36 | 0.18 | 0.22 | 0.09 | 0.10 | 0.26 |
Pr. > F | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) |
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Sarkar, J.; Sarkar, S. Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India. Int. J. Financial Stud. 2018, 6, 17. https://doi.org/10.3390/ijfs6010017
Sarkar J, Sarkar S. Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India. International Journal of Financial Studies. 2018; 6(1):17. https://doi.org/10.3390/ijfs6010017
Chicago/Turabian StyleSarkar, Jayati, and Subrata Sarkar. 2018. "Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India" International Journal of Financial Studies 6, no. 1: 17. https://doi.org/10.3390/ijfs6010017
APA StyleSarkar, J., & Sarkar, S. (2018). Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India. International Journal of Financial Studies, 6(1), 17. https://doi.org/10.3390/ijfs6010017