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Public Concern, Board Characteristics and Commercial Banks Performance——Empirical Evidence from Negative News Searches |
DING Ning,WU Xiao,LI Xingrong |
Finance School, Dongbei University of Finance and Economics |
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Abstract The wide application of big data technology promotes the “cobweb” dissemination of negative news among the public. At present, it is inconclusive whether the public attention will affect the bank's operating performance. Therefore, the research on it can provide a new way of thinking for banks to improve quality and efficiency. Using the balanced panel data of 23 listed banks from 2017 to 2020, this paper constructs a panel data model and draws the following conclusionsFirstly, due to the existence of the “halo effect”, the public concern plays a negative influence to the banks performance, this conclusion is still valid on the basis of a detailed discussion of endogenous issues and a variety of robustness tests. Secondly, reputation is an important mechanism for the public concern to affect the banks performance. Thirdly, from the perspective of the board characteristics, the size of the board of directors plays a significant positive moderating role in the negative relationship between public concern and bank operating performance. However, independent directors have not played a positive role, which to some extent indicates that there is still room for further improvement of the existing independent director system in bank management in China.
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Received: 28 February 2021
Published: 15 June 2021
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Corresponding Authors:
WU Xiao
E-mail: m18800230961@163.com
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