The Effect Of Executive Team Background Characteristics On Bank Risk

Since ancient times,the banking system has been an important part of the financial market.The stability of the banking system is directly related to the healthy development of a country and even the world economy.In 2008,The global financial crisis caused by the excessive risk of American banks is the best warning.In this context,the analysis of the risk level of the financial system,especially the banking industry,is once again the core topic.The research on bank risk is mostly based on the perspectives of external governance factors and internal governance factors.It is relatively rare to explain the causes of bank risks from the perspective of the managers themselves,especially the bank's senior management team.Therefore,it is of great significance to study the influence of background characteristics of senior management team on bank risk,which not only broadens the perspective of background characteristics of executive team and bank risk,but also proposes the construction of the senior management team for the listed bank,the identification of talents,and the management of risks.Firstly,based on the research results of relevant literatures at home and abroad,this paper analyzes the rationality and mechanism of the influence of the background characteristics of senior management teams on bank risk based on the research perspective of high-level echelon theory in internal corporate governance and behavioral decision theory in bank risk research.Based on the results of previous studies,this paper selected 7 alternative variables for the background characteristics of top management teams,including the proportion of women,average age,average academic qualifications,political background connections,financial background,average tenure,and part-time ratio,And specifically analyze the transmission mechanism and action mechanism of each of the top management team's background characteristics on the bank's risk,Based on this,we propose corresponding research hypothesis.Secondly,in the empirical analysis section,this paper uses the data of 16 listed banks for the years from 2007 to 2016 as research samples,selects non-performing loan ratios and bankruptcy risks as alternative variables to bank risks,and uses the FGLS panel model to empirically study the influence of executive team background characteristics on bank risk.The results show that:(1)The proportion of females in the senior management team is significantly negatively related to bank risk,and it is even more pronounced in non-large state-owned listed banks;(2)The average age of senior management teams is significantly negatively related to bank risk,and it is even more pronounced in large state-owned listed banks.(3)the significant negative correlation between the average academic background of the executive team and the bank risk is partially verified;(4)The significant positive correlation between the political background of the senior management team and the bank risk is partly verified;(5)The financial background of the senior management team is significantly negatively related to bank risk,and it is even more pronounced in non-large state-owned listed banks;(6)The significant negative correlation between the average tenure of the senior management team and the bank's risk was partially verified;(7)The significant negative correlation between the proportion of senior management team and the bank risk is partially verified,and it is even more pronounced in non-large state-owned listed banks.Finally,according to the results of the previous empirical analysis,relevant policy recommendations are put forward,and the research expands the research perspective of human capital and bank risk,provides reasonable suggestions and standards for the establishment of the senior management team of listed banks,the expansion of human capital,the selection of talents,and the control of risk levels.