Implications of board size, board composition and bank size on the profitability of Philippine private universal banks for the period 2000-2005
Date of Publication
2007
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Commerce Major in Management of Financial Institutions
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Abstract/Summary
This study examines the influence of board attributes such as size, and composition, which will refer to seniority, service years and educational attainment of directors, and bank size in terms of total resources and number of branches on firm performance. The data employed were from 10 Philippine private universal banks for the period 2000-2005. The Pearson product moment coefficient of correlation and dummy variables were used to establish the relationship between the variables and to represent the categorical variables for board composition, respectively.
Though there were previous studies suggesting that both resources and branch network do not influence profitability, it can not be excluded from the assessment of company's performance since it significantly contributes to a firm's overall profitability. Findings reveal that on a per bank basis, bank size has a significant effect on profitability particularly to key measures such as net income and net profit margin. Moreover, bank size in terms of total resources and number of branches is positively associated with firm performance. However, results for board size and composition indicate otherwise. It was largely affected by the constant number of directors obtained in some banks and a limited sample size for board composition due to unavailability of data. Thus the researchers recommend future researchers to increase the time frame and conduct study on a different industry to achieve more credible results.
Abstract Format
html
Language
English
Format
Accession Number
TU13359
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
50, [50] leaves
Keywords
Banks and banking--Philippines
Recommended Citation
Andrada, M., Victor, B., & Macabebe, J. (2007). Implications of board size, board composition and bank size on the profitability of Philippine private universal banks for the period 2000-2005. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/17438
