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Publication Detailed Description
The influence of foreign equity and board membership on corporate strategy and management of internal costs in Portuguese banks
Journal Title
Management Accounting Research
Year (definitive publication)
2009
Language
English
Country
Netherlands
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Abstract
This study examines the influence of foreign equity and board membership on corporate
strategy and the management of internal costs of banks headquartered in Portugal using
proprietary data maintained by the Central Bank. The findings reveal that foreign equity reduces
both total and operating costs, and foreign board membership reduces domestic banks’
dependence on revenues from traditional areas of business and enhances the potential for
generating revenues from non-traditional areas of business. These results are controlled for a
variety of standard accounting ratios used in the literature. We argue that foreign equity and
board membership forces banks to redirect corporate strategy and to reduce internal costs.
Acknowledgements
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Keywords
Foreign equity and boards,Corporate governance,Bank cost management
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
Funding Records
| Funding Reference | Funding Entity |
|---|---|
| PTDC/GES/72859/2006 | Fundação para a Ciência e a Tecnologia |
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