Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Executive board composition and bank risk taking
AU - Berger, Allen N.
AU - Kick, Thomas
AU - Schaeck, Klaus
PY - 2014/10/1
Y1 - 2014/10/1
N2 - Little is known about how the demographic characteristics of executive teams affect corporate governance in banking. Exploiting a unique dataset, we investigate how age, gender, and educational composition of executive teams affect the portfolio risk of financial institutions. Using difference-in-difference estimations that focus exclusively on mandatory executive retirements for the entire population of German bank executive officers, we demonstrate that younger executive teams increase portfolio risk, as do board changes that result in a higher proportion of female executives, although this latter effect is weaker in terms of both statistical and economic significance. In contrast, when board changes increase the representation of executives holding Ph.D. degrees, portfolio risk declines.
AB - Little is known about how the demographic characteristics of executive teams affect corporate governance in banking. Exploiting a unique dataset, we investigate how age, gender, and educational composition of executive teams affect the portfolio risk of financial institutions. Using difference-in-difference estimations that focus exclusively on mandatory executive retirements for the entire population of German bank executive officers, we demonstrate that younger executive teams increase portfolio risk, as do board changes that result in a higher proportion of female executives, although this latter effect is weaker in terms of both statistical and economic significance. In contrast, when board changes increase the representation of executives holding Ph.D. degrees, portfolio risk declines.
KW - banks
KW - executives
KW - porfolio risk
KW - age
KW - gender
KW - education
U2 - 10.1016/j.jcorpfin.2013.11.006
DO - 10.1016/j.jcorpfin.2013.11.006
M3 - Journal article
VL - 28
SP - 48
EP - 65
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
SN - 0929-1199
ER -