How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?

Manuscript type Empirical Research question/issue The state of non-performing loans (NPLs) poses serious threat to the European financial market and this has increased pressure on board of directors to intensify their monitoring functions to safeguard shareholder assets. Yet there is a dearth of res...

Descripción completa

Detalles Bibliográficos
Autores: Akwaa Sekyi, Ellis Kofi, Moreno Gené, Jordi, Miglietta, Federica, Roncone, Valeria
Tipo de recurso: documento de trabajo
Estado:Versión publicada
Fecha de publicación:2018
País:España
Institución:Universitat de Lleida (UdL)
Repositorio:Repositori Obert UdL
OAI Identifier:oai:repositori.udl.cat:10459.1/67696
Acceso en línea:http://hdl.handle.net/10459.1/67696
Access Level:acceso abierto
Palabra clave:Board Characteristics
Corporate Governance
European Banking
Insider Ownership
Non- Performing Loans
id ES_5cfe214a1ea6df42e7c4eaea2b6ef06b
oai_identifier_str oai:repositori.udl.cat:10459.1/67696
network_acronym_str ES
network_name_str España
repository_id_str
spelling How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?Akwaa Sekyi, Ellis KofiMoreno Gené, JordiMiglietta, FedericaRoncone, ValeriaBoard CharacteristicsCorporate GovernanceEuropean BankingInsider OwnershipNon- Performing LoansManuscript type Empirical Research question/issue The state of non-performing loans (NPLs) poses serious threat to the European financial market and this has increased pressure on board of directors to intensify their monitoring functions to safeguard shareholder assets. Yet there is a dearth of research that complement board characteristics with managerial incentives to address NPLs. We examine 102 banks from 22 European countries to ascertain how board characteristics and insider ownership affect NPLs. Research findings/insight We find that whilst gender diversity, board size and insider ownership have negative relation with NPLs, average board age and board tenure show positive relation. The inclusion of insider ownership improves the significance of board characteristics therefore confirming a complementary instead of substitutable approaches in addressing NPLs. We report significant differences in the intrinsic board characteristics of diversified and non-diversified banks. Theoretical/academic implications We contribute to existing literature by providing empirical support for the stakeholder and agency theories in safeguarding assets of shareholders and indirect stakeholders (society). Practitioner/policy implications Our study adopts an incentivizing approach to risk management and provides a framework for dealing with moral hazards in bank management, which lead to loan losses. Again, our findings justify the European Banking Authority’s policy of the mandatory 40% female independent directors among member countries.Edicions de la Universitat de LleidaUniversitat de Lleida. Departament d'Administració d'Empreses2018info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://hdl.handle.net/10459.1/67696reponame:Repositori Obert UdL instname:Universitat de Lleida (UdL)InglésReproducció del document publicat a http://www.aegern.udl.cat/ca/recerca/working-papers/New trends in accounting and management, 2018, núm. 14, p. 1-66(c) Edicions de la Universitat de Lleida, 2018(c) AEGERN (UdL), 2018info:eu-repo/semantics/openAccessoai:repositori.udl.cat:10459.1/676962026-06-24T12:42:17Z
dc.title.none.fl_str_mv How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
title How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
spellingShingle How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
Akwaa Sekyi, Ellis Kofi
Board Characteristics
Corporate Governance
European Banking
Insider Ownership
Non- Performing Loans
title_short How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
title_full How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
title_fullStr How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
title_full_unstemmed How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
title_sort How does board characteristics and insider ownership affect non-performing loans (NPLS) in European banking?
dc.creator.none.fl_str_mv Akwaa Sekyi, Ellis Kofi
Moreno Gené, Jordi
Miglietta, Federica
Roncone, Valeria
author Akwaa Sekyi, Ellis Kofi
author_facet Akwaa Sekyi, Ellis Kofi
Moreno Gené, Jordi
Miglietta, Federica
Roncone, Valeria
author_role author
author2 Moreno Gené, Jordi
Miglietta, Federica
Roncone, Valeria
author2_role author
author
author
dc.contributor.none.fl_str_mv Universitat de Lleida. Departament d'Administració d'Empreses
dc.subject.none.fl_str_mv Board Characteristics
Corporate Governance
European Banking
Insider Ownership
Non- Performing Loans
topic Board Characteristics
Corporate Governance
European Banking
Insider Ownership
Non- Performing Loans
description Manuscript type Empirical Research question/issue The state of non-performing loans (NPLs) poses serious threat to the European financial market and this has increased pressure on board of directors to intensify their monitoring functions to safeguard shareholder assets. Yet there is a dearth of research that complement board characteristics with managerial incentives to address NPLs. We examine 102 banks from 22 European countries to ascertain how board characteristics and insider ownership affect NPLs. Research findings/insight We find that whilst gender diversity, board size and insider ownership have negative relation with NPLs, average board age and board tenure show positive relation. The inclusion of insider ownership improves the significance of board characteristics therefore confirming a complementary instead of substitutable approaches in addressing NPLs. We report significant differences in the intrinsic board characteristics of diversified and non-diversified banks. Theoretical/academic implications We contribute to existing literature by providing empirical support for the stakeholder and agency theories in safeguarding assets of shareholders and indirect stakeholders (society). Practitioner/policy implications Our study adopts an incentivizing approach to risk management and provides a framework for dealing with moral hazards in bank management, which lead to loan losses. Again, our findings justify the European Banking Authority’s policy of the mandatory 40% female independent directors among member countries.
publishDate 2018
dc.date.none.fl_str_mv 2018
dc.type.none.fl_str_mv info:eu-repo/semantics/workingPaper
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format workingPaper
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10459.1/67696
url http://hdl.handle.net/10459.1/67696
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Reproducció del document publicat a http://www.aegern.udl.cat/ca/recerca/working-papers/
New trends in accounting and management, 2018, núm. 14, p. 1-66
dc.rights.none.fl_str_mv (c) Edicions de la Universitat de Lleida, 2018
(c) AEGERN (UdL), 2018
info:eu-repo/semantics/openAccess
rights_invalid_str_mv (c) Edicions de la Universitat de Lleida, 2018
(c) AEGERN (UdL), 2018
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv Edicions de la Universitat de Lleida
publisher.none.fl_str_mv Edicions de la Universitat de Lleida
dc.source.none.fl_str_mv reponame:Repositori Obert UdL
instname:Universitat de Lleida (UdL)
instname_str Universitat de Lleida (UdL)
reponame_str Repositori Obert UdL
collection Repositori Obert UdL
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1869408969641951232
score 15.811543

Similares en LA Referencia