Empirical Evidence for Commercial Bank Efficiency and Corporate Directorship in China

Abstract

This study examines the links between bank efficiency and the profile
of corporate directorships of listed banks in China. We focused on the
composition of independent, foreign and women directors, human and social
capital of the directors, and their diligence for board meetings. We collected
the individual director profiles of a panel of 28 commercial banks data from
2010 to 2018. GMM estimation is employed to address the endogeneity
issues. In general, we found that independent and foreign directors have a
positive impact on bank efficiency, as well as educational level, professional
qualification, political connection, and their board meeting attendance.
These findings suggest that a certain profile of corporate directorship can
significantly drive listed bank efficiency.