Digital Expertise of Corporate Leaders and Bank Performance: A Governance Perspective from China

DOI: https://doi.org/10.62517/jse.202611101

Author(s)

Zhaowei Ma

Affiliation(s)

School of Finance, Nankai University, Tianjin, China

Abstract

We examine the causal impact of corporate leaders' digital expertise on bank performance in China's hybrid banking system. Using 3,585 bank-year observations from 353 commercial banks over 2008-2022, we find that corporate leaders' digital expertise is positively associated with bank performance, with subsample analysis indicating that the primary effect stems from board-level leadership. Findings are robust to controlling for a broad set of both country and bank determinants, accounting for endogeneity by using instrument variables - the density of mobile phone base stations-and conducting difference-in-difference analysis. Results extend upper echelons theory to the fintech era and have implications for regulate strategies, including talent redistribution, bank governance and management.

Keywords

Banking; Performance; Digital Expertise; Fintech; Governance

References

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