The Influence of Board Structure on Performance of Croatian Banks

Abstract:

In this research we examine whether and to what extent board structure influences bank performance. Although this subject has occupied scholars and researchers over the years, most researches of this issue in banking sector refer to the US market or other developed countries and, to a much lesser extent, to the European markets, especially for the Central and Eastern European countries. Aiming to fulfil this gap, the authors decided to find out evidence on the aforementioned relationship in the banking sector in Croatia in the 2002-2013 period.  Specifically, employing Arellano-Bover/Blundell-Bond estimator, the research results indicate that the supervisory board size and the participation of women as president of the management board do not make an influence on bank performance. However, growth of the proportion of women in both management and supervisory boards negatively affect bank performance.