Talavera, O., Yin, S. and Zhang, M. (2018) Age diversity, directors' personal values, and bank performance. International Review of Financial Analysis, 55. pp. 60-79. ISSN 1057-5219
Abstract
This study examines the effects of board diversity on bank profitability and risk. Using a sample of 97 Chinese banks over a period from 2009 to 2013, we find that board age diversity is negatively associated with bank profitability. To further investigate why age-diverse boards influence bank performance, we decompose board age diversity into diversity of directors' personal values, utilizing the World Values Survey. Our findings suggest that the heterogeneity among directors' views on risk, prudence, and wealth is more likely to spark intragroup conflicts in the decision-making process. This prevents the board from functioning effectively and ultimately weakens bank profitability. Our results are robust with respect to alternative measures of diversity and bank performance.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2017 Elsevier. This is an author produced version of a paper subsequently published in International Review of Financial Analysis. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/) |
Keywords: | Board of directors; Age diversity; Value diversity; Bank performance |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 03 Nov 2017 12:57 |
Last Modified: | 13 Dec 2023 13:53 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.irfa.2017.10.007 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:123371 |