This quantitative, correlational study examined the relationships among leadership, board governance, director independence, and corporate performance in community banks. Reviewed literature suggested that more empowering leadership encouraged more involved board governance, and coupled with higher levels of director independence produced higher performance. This study provided evidence that more empowering leadership was positively related to governance and may indeed encourage more involved governance and higher levels of director independence in community banks. The unexpected conclusion, however, was that collectively and independently community banks with more empowering leadership, more involved governance, and more independent directors produced lower corporate performance in this sample than community banks with more authoritative leadership, less involved governance, and less independent directors. The findings suggest that the more collaborative strategic board relationships recommended by Sarbanes-Oxley and current bank regulations do not have the positive influence on bank performance that are intimated with these guidelines. This outcome may create a substantial barrier to substantive reforms designed to increase director independence and involvement in board governance. Further research is needed to replicate the relationships tested here in larger, publicly held banks, and in a broader national population of banks. Recommendations posed here invite community bank leaders, community bank directors, and community bank regulators to reflect on the accuracy of current theory and professional guidance relating to strategic board relationships and performance in community banks.
|School:||University of Phoenix|
|School Location:||United States -- Arizona|
|Source:||DAI-A 68/12, Dissertation Abstracts International|
|Keywords:||Bank performance, Banks, Board governance, Board relationships, Community banks, Corporate performance, Director independence, Leadership, Strategic boards|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be