Bank governance and performance: a survey of the literature

Fernandes, Catarina; Farinha, Jorge; Martins, Francisco Vitorino; Mateus, Cesário

Publication

Bank governance and performance: a survey of the literature

2018Journal article

dc.contributor.author	Fernandes, Catarina
dc.contributor.author	Farinha, Jorge
dc.contributor.author	Martins, Francisco Vitorino
dc.contributor.author	Mateus, Cesário
dc.date.accessioned	2019-11-04T09:56:11Z
dc.date.available	2019-11-04T09:56:11Z
dc.date.issued	2018
dc.description.abstract	This paper seeks to review the theoretical and empirical literature on the relationship between bank governance and performance, providing a comprehensive understanding of the existing research and offering guidance for investors and regulators on the major points of consensus and disagreement among researchers on this issue. Although the question of what determines the levels of firms’ performance, with special emphasis on the role of the corporate governance, has long been the subject of substantial academic research, it gained increased attention in the banking industry in the last decade due to a series of financial scandals and, more recently, to the global financial crisis. In fact, in the wake of the 2007–2008 financial crisis, bank corporate governance mechanisms received heightened attention, accompanied by the renewed interest in the degree of effectiveness of such mechanisms, and their impact on performance. Given the vast number of influences on corporate performance, such as the numerous characteristics of the board of directors, there is an abundant literature on the determinants of performance. Thus, this paper tries to bring together this diverse body of knowledge into a coherent whole. Banks have unique attributes that interfere with the way in which the usual corporate governance mechanisms work. Thus, the main differences between banks and non-financial firms, which justify that some of the regularities found in the literature on the relationship between a set of corporate governance mechanisms and performance do not hold for banks, are also analysed. Then, we extensively review the literature on the board of directors and its impact on performance in the financial crisis and non-financial crisis periods. Finally, we also survey the (very) scarce research on the relationship between board characteristics and bank failures.	pt_PT
dc.description.sponsorship	This research has been financed by the European Regional Development Fund through COMPETE 2020—Programa Operacional Competitividade e Internacionalização (POCI) and by Portuguese public funds through FCT (Fundação para a Ciência e a Tecnologia) in the framework of the project POCI-01-0145-FEDER-006890.	pt_PT
dc.description.version	info:eu-repo/semantics/publishedVersion	pt_PT
dc.identifier.citation	Fernandes, Catarina; Farinha, Jorge; Martins, Francisco Vitorino; Mateus, Cesario (2018). Bank governance and performance: a survey of the literature. Journal of Banking Regulation. ISSN 1750-2071. 19:3, p. 236–256	pt_PT
dc.identifier.doi	10.1057/s41261-017-0045-0	pt_PT
dc.identifier.issn	1750-2071
dc.identifier.uri	http://hdl.handle.net/10198/19724
dc.language.iso	eng	pt_PT
dc.peerreviewed	yes	pt_PT
dc.publisher	Macmillan	pt_PT
dc.rights.uri	http://creativecommons.org/licenses/by-nc/4.0/	pt_PT
dc.subject	Corporate governance	pt_PT
dc.subject	Banks	pt_PT
dc.subject	Performance	pt_PT
dc.subject	Financial crisis	pt_PT
dc.title	Bank governance and performance: a survey of the literature	pt_PT
dc.type	journal article
dspace.entity.type	Publication
oaire.citation.endPage	256	pt_PT
oaire.citation.issue	3	pt_PT
oaire.citation.startPage	236	pt_PT
oaire.citation.title	Journal of Banking Regulation	pt_PT
oaire.citation.volume	19	pt_PT
person.familyName	Fernandes
person.givenName	Catarina
person.identifier.ciencia-id	9E19-46B7-D5BC
person.identifier.orcid	0000-0002-3160-462X
person.identifier.scopus-author-id	57192082026
rcaap.rights	restrictedAccess	pt_PT
rcaap.type	article	pt_PT
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