Purpose The purpose of this study is to examine the impact of chief executive officer (CEO) personal characteristics on the performance of Indian commercial banks. Additionally, it also analyses the nonlinear relationship of CEO age and CEO tenure on the bank performance. Design/methodology/approach A balanced panel data approach has been used in this study. Particularly, the fixed effect estimation technique is used to examine the relationship between CEO characteristics and bank performance during the period 2009–2010 to 2016–2017. Findings The authors find that professional qualification of CEOs in finance stream enhances performance. Additionally, the impact of CEO duality is found to be positive and significant on performance. Male CEOs are beneficial for bank performance. Well experienced CEOs contribute to higher performance. The results are robust across the various proxies of bank performance, and sub-samples based on ownership, size of the bank and board size. Practical implications This study provides insights to policy regulators and policymakers who are entrusted with the appointment of the CEOs in the banks in the light of the ongoing regulatory reforms. Originality/value This study can be considered as one of the early studies, which examines the association between CEO characteristics and bank performance from an emerging economy perspective. It also extends the existing study by considering both public and private banks operating in India.
This study focuses on assessing the role of various bank-specific, industry-specific and macroeconomic determinants in Indian commercial banks performance. Performance of the Indian banks has been measured by Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) and Pre-provision profit ratio. The study analyses impact of various bank-specific factors like bank size, capital ratio, risk, cost to income ratio, funding cost, revenue diversification, labour productivity and bank age on bank performance. It also tries to assess the relationship between various bank-specific and industry-specific variables like bank concentration, inflation rate and GDP growth rate with bank performance. Fixed effects estimation model and Generalized Method of Moments (GMM) have been used on a panel data of 19 years for 64 commercial banks of India. The findings reveal that private sector banks are more profitable than the public sector banks.ABOUT THE AUTHORS Neeraj Gupta has completed Ph.D.
Purpose This study aims to investigate the impact of various audit committee (AC) characteristics on the performance of Indian commercial banks. Additionally, it also analyses the non-linear relationship of AC size and AC chairman tenure with bank performance. Design/methodology/approach A panel data approach has been used in this study. The authors have used the fixed-effect estimation technique to examine the relationship between AC characteristics and bank performance during the period 2009–2010 to 2016–2017. Findings The authors find that the professional financial education of the AC chairman and members positively affects bank performance. the frequency of the AC meetings and audit chair busyness bears an inverse relationship with performance. The findings are more or less consistent across the various bank performance measures and subsamples classified based on the time period and ownership of the banks. Practical implications This study provides insights to policy regulators and policymakers who are entrusted with the establishment of ACs in the banks in light of the ongoing regulatory reforms. Originality/value The study is among one of the early studies, which study the relationship between AC characteristics and bank performance in the light of recent regulatory reforms. It also extends the existing study by considering both public and private banks operating in India.
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