Open AccessBoard composition and bank performance in a small island developing state: The case of Curacao
Author(s) -
Sherma Muller,
Karen Watkins-Fassler
Publication year - 2021
Publication title -
estudios gerenciales
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.144
H-Index - 12
eISSN - 2665-6744
pISSN - 0123-5923
DOI - 10.18046/j.estger.2021.161.4481
Subject(s) - corporate governance , agency (philosophy) , accounting , business , legislation , diversity (politics) , subsidiary , gender diversity , principal–agent problem , state (computer science) , financial system , political science , finance , sociology , law , algorithm , multinational corporation , computer science , social science
Based on agency theory, this paper contributes to the literature by assessing the effects of Supervisory Board size, gender diversity, and multiple directorship on performance within the banking industry of the small island developing state: Curacao. The research made use of the data drawn from annual reports of locally generated banks and its subsidiaries. Results from linear regressions indicate a positive relationship between multiple directorship and bank performance, and a negative association between bank outcomes and both gender diversity and board size. According to these results, it is concluded that the legislation on corporate governance for credit institutions in Curacao should incorporate a maximum number of members on the board, as well as promote interlocking directorates and quotas by gender.