Corporate Governance and Performance in the Largest European Listed Banks During the Financial Crisis

Innovar. 2014. Vol. 24. No. 53. P. 83–98.

Ivashkovskaya I., Stepanova A., Felício J., Rodrigues, R.

This research focuses on the relationship between corporate governance and performance in the largest European listed banks, which have been studied to a lesser extent within this field. The study is based on agency theory and we use a sample of 404 observations referring to 97 banks selected from the annual ranking of the 2,000 biggest companies in the world prepared by Forbes. The paper covers the period from 2006 to 2010, thus, examining the changes in the performance drivers in the recent financial crisis. On the basis of the panel data analysis, we confirm that the variety of governance factors including board size, insider appointed, directors’ age, board meetings and affiliated committees influence the performance of the banks. This paper contributes to a better understanding of the effect of corporate governance on the financial performance of the financial companies in times of high capital market volatility.

Keywords: корпоративное управление, corporate governance, финансовый кризис, financial crisis, Bank Performance, эффективность банка, agency theory, агентская теория

Publication based on the results of: Research of Corporate Financial Decisions of Russian Companies and Companies of other Emerging Capital Markets under the Pressure of Global Markets Transformation and Knowledge Economy Development (2014)