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Eurasian Business Review
Erschienen in: Eurasian Business Review 3/2021

27.02.2020 | Regular Article

Board independence and Chinese banking efficiency: a moderating role of ownership restructuring

verfasst von: Ramiz ur Rehman, Junrui Zhang, Muhammad Akram Naseem, Muhammad Ishfaq Ahmed, Rizwan Ali

Erschienen in: Eurasian Business Review | Ausgabe 3/2021

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Abstract

This study investigates how Chinese banking sector reforms have affected the relationship between banking performance and bank board structure. The study analyzes data from listed commercial Chinese banks between 2000 and 2013, and banking efficiency scores are estimated using the stochastic frontier approach (SFA) and data envelopment analysis (DEA). The impact of board structure and structural reforms on banking efficiency is further analyzed using panel data regression. We find that board independence has a negative influence on banking efficiency, but it becomes positive when the banks are listed on the stock market. This finding confirms the soft-budget constraint theory, which holds that large banks are less efficient than smaller ones as the former can more easily obtain financial support during times of distress. Further, the listing of state-owned banks positively moderates the relationship between board independence and banking efficiency. The study contributes to the literature on banking reforms, board structure, and banking efficiency. It confirms the theoretical basis for Chinese banking reforms and that banking efficiency has improved since the ownership restructuring.
Vorheriger Artikel Does privatization matter for corporate social responsibility? Evidence from China

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Metadaten
Titel
Board independence and Chinese banking efficiency: a moderating role of ownership restructuring
verfasst von
Ramiz ur Rehman
Junrui Zhang
Muhammad Akram Naseem
Muhammad Ishfaq Ahmed
Rizwan Ali
Publikationsdatum
27.02.2020
Verlag
Springer International Publishing
Erschienen in
Eurasian Business Review / Ausgabe 3/2021
Print ISSN: 1309-4297
Elektronische ISSN: 2147-4281
DOI
https://doi.org/10.1007/s40821-020-00155-9

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