Skip to main content

Research Repository

Advanced Search

Board Financial Expertise and the Capital Decisions of US Banks

Gilani, U.; Keasey, K.; Vallascas, F.

Board Financial Expertise and the Capital Decisions of US Banks Thumbnail


Authors

U. Gilani

K. Keasey



Abstract

We examine whether increasing financial expertise among independent directors facilitates bank capital decisions that promote financial stability. We find US banks with more financial expert independent directors opt for higher target capital ratios and adjust faster their capital structure when they are below the target. We provide evidence suggesting that our results are driven by the skill-set of these directors that lead to a better understanding of bank risks and access to external recapitalization choices. Our findings are further amplified by an increase in the exposure to losses of financial expert directors and by exogenous increases in regulatory scrutiny.

Citation

Gilani, U., Keasey, K., & Vallascas, F. (2021). Board Financial Expertise and the Capital Decisions of US Banks. Journal of Corporate Finance, 71, Article 102091. https://doi.org/10.1016/j.jcorpfin.2021.102091

Journal Article Type Article
Acceptance Date Aug 31, 2021
Online Publication Date Sep 3, 2021
Publication Date 2021-12
Deposit Date Sep 1, 2021
Publicly Available Date Sep 4, 2023
Journal Journal of Corporate Finance
Print ISSN 0929-1199
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 71
Article Number 102091
DOI https://doi.org/10.1016/j.jcorpfin.2021.102091
Public URL https://durham-repository.worktribe.com/output/1236073

Files




You might also like



Downloadable Citations