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Does Regulating Banks’ Corporate Governance Help? A Review of the Empirical Evidence Read chapter Read first chapter

2018 | OriginalPaper | Chapter

5. Are There Differences in Boards of Directors Between Banks and Non-financial Firms? Some Evidence from EU Listed Companies

Authors : Vittorio Boscia, Valeria Stefanelli, Andrea Ventura

Published in: Corporate Governance in Banking and Investor Protection

Publisher: Springer International Publishing

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Abstract

This study compares the board features of major listed bank and non-financial firms in Europe. We find that at the industry-specific level the structure of bank board’s is similar to that of non-financial firms, although banks tend to have more meetings and committees. Second, when we consider country-specific board diversity, bank boards are similar across countries apart from in Spain where the bank boards have a higher presence of older directors, a lower number of independents and foreigners, and more meetings. Finally, when we look at domestic-specific board diversity differences we find no statistically significant differences. All in all there is not much difference between bank and non-financial boards.

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previous chapter IT Governance: Who Cares More? First Evidence from EU Banks and Supervisors
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Footnotes
1
The chapter is a result of a joint effort between the authors. In particular, Vittorio Boscia wrote Sects. 5.2 and 5.8; Valeria Stefanelli wrote Sects. 5.1, 5.3, 5.5 and 5.7; Andrea Ventura wrote Sects. 5.4 and 5.6.
 
2
Nedcommunity (2015), Il punto sugli amministratori indipendenti, EGO. n. 3, January (available at: http://​www.​nedcommunity.​com/​Contents/​Documents/​EGO%20​n%20​3%20​gennaio%20​2015.​pdf)
 
3
Directive 2013/34/EU on the annual financial statements requires companies to include the CG statement
 
4
EU Commission Recommendation of 9 April 2014 on the quality of corporate governance reporting (‘comply or explain’). In particular, n. 4 of the “whereas” states: The corporate governance statement should provide essential information on the corporate governance arrangements of the company, such as information relating to the relevant corporate governance code(s) applied by that company, the internal control and risk management systems, the shareholder meeting and its powers, shareholders’ rights, administrative, management and supervisory bodies and their committees.
 
5
EU Commission Green Paper (2010), corporate governance in financial institutions and remuneration policies of 2 June 2010.
 
6
This result appears to be consistent with EBA (2016): “These draft Guidelines aim at further harmonising institutions’ internal governance arrangements, processes and mechanisms across the EU, in line with the new requirements in this area introduced in the Capital Requirements Directive (CRD) and also taking into account the proportionality principle.”
 
7
In fact, Germany Code of Conduct states that all members of supervisory boards, taking into account in this study, are considered independent.
 
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Metadata
Title
Are There Differences in Boards of Directors Between Banks and Non-financial Firms? Some Evidence from EU Listed Companies
Authors
Vittorio Boscia
Valeria Stefanelli
Andrea Ventura
Copyright Year
2018
Book
Corporate Governance in Banking and Investor Protection

Print ISBN: 978-3-319-70006-9

Electronic ISBN: 978-3-319-70007-6

Copyright Year: 2018

DOI
https://doi.org/10.1007/978-3-319-70007-6_5

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