Influence of board size and composition on bank performance - case of Serbia

Abstract

We investigate the relation between board structure (size and composition) and bank performance in 16 Serbian commercial banks with a dominant shareholder in 2006-2010. We analyze this relation using OLS regression analysis on an unbalanced panel dataset of 67 observations. We find no significant relation between proportion of independent directors on the board and bank performance. We find that bank profitability measured by ROA increases as the number of directors on a board decreases.