Now you see me: diversity, CEO education, and bank performance in the UK

  • Received October 21, 2017;
    Accepted February 23, 2018;
    Published March 16, 2018
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.15(1).2018.23
  • Article Info
    Volume 15 2018, Issue #1, pp. 277-291
  • TO CITE АНОТАЦІЯ
  • Cited by
    5 articles
  • 1293 Views
  • 158 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

This paper investigates the impact of board diversity and CEO educational background on bank performance. Based on a sample of 54 UK publicly listed banks over the period 2005–2015, we examine the relationship of both static and dynamic modelling frameworks, which controls for individual specific effects and potential sources of endogeneity. The study reports a positive but insignificant relationship between CEO education and bank performance, and a positive significant association between gender diversity and bank performance. It further denotes a negative and significant impact of nationality diversity on bank performance. Our findings provide empirical support for the significance of the association between board diversity and firm performance. Our study also provides support for theories concerned with how corporate governance differs in financial institutions.

view full abstract hide full abstract
    • Table 1. Summary statistics and cross-correlation
    • Table 2. OLS model estimates
    • Table 3. Robust OLS model estimates
    • Table 4. Random effect model estimates
    • Table 5. Fama – MacBeth model estimates
    • Table 6. Quantile regression model estimates