Zusammenfassung
The purpose of this study was to examine board of directors’ characteristics and its effect on listed
banks financial performance. A total of eleven (11) listed banks were covered by the study, spanning from
2010 to 2017 (a period of 8 years). A panel regression analysis (fixed, random effect and Hausman test) was
used. In relation to board characteristics, the results found that 27.8% were executive directors, 72.7 percent of
the board of directors are independent directors, and 17.5 percent of the board are females and on an average
9 members constitute the size of listed banks board. Further, board size and bank age have significant positive
effect on listed banks’ performance (ROE and ROA). However, total asset has only positive significant effect on
ROA. The study therefore, concludes that, increase in board size ensures effective scrutiny leading to enhance
banks’ performance, whereas, increase in board independence does not automatically result in increase in
banks’ financial performance. The study further recommends that policy makers must strictly enforce gender
quota representation on banks board, and Future researchers could examine the rationale behind the inverse
relation between board independence and banks performance (ROA).
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