Gilani, U, Keasey, K orcid.org/0000-0001-7645-3274 and Vallascas, F (2021) Board financial expertise and the capital decisions of US banks. Journal of Corporate Finance, 71. 102091. ISSN 0929-1199
Abstract
We examine whether increasing financial expertise among independent directors facilitates bank capital decisions that promote financial stability. We find US banks with more financial expert independent directors opt for higher target capital ratios and adjust faster their capital structure when they are below the target. We provide evidence suggesting that our results are driven by the skill-set of these directors that lead to a better understanding of bank risks and access to external recapitalization choices. Our findings are further amplified by an increase in the exposure to losses of financial expert directors and by exogenous increases in regulatory scrutiny.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier B.V. All rights reserved. This is an author produced version of an article published in Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 26 Oct 2021 13:24 |
Last Modified: | 03 Mar 2023 01:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jcorpfin.2021.102091 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:179616 |