The Relationship between Board Composition and Operational Risk Events in the Banking Industry
| Autor: | Yun-mei Lee, 李韻梅 |
|---|---|
| Rok vydání: | 2015 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 103 The aim of this study is to investigate the relationship between board composition and operational risk events in the banking industry. Based on the corporate governance research, this study examines the effect of board composition on the likelihood of operational risk events. Board composition consists of board size and the ratio of independent directors. The study employs the Logistic regression analysis to conduct the estimation procedure. The sample includes 33 banks, and the empirical period is from 2008 to 2013. The empirical results show that the board size has a negative effect on the likelihood of operational risk events but insignificant. However, the non-linear relationship between board size and the probability of operational risk events is significantly positive. This implies that when the board member is over certain a critical value, the board monitoring function decreases, which may result in higher probability of operational risk events. The non-linear relationship between the ratio of independent directors and the probability of operational risk events is significantly positive. This implies that board function does not work. In addition, tenure heterogenity has a negative effect on the likelihood of operational risk events, which reveals that having a more diverse board can have an adverse impact on the board monitoring function. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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