Roles of Outside Directors in Cooperative Financial Institutions
10 Pages Posted: 20 Mar 2011
Date Written: March 18, 2011
As the governance of financial institutions is becoming an important issue, there are many papers empirically investigating the governance issues of banks, which are stock companies. However, cooperative structured financial institutions (co-ops), which have a unique governance structure different from stock companies, play a substantial role in the Japanese banking markets, and, therefore, it is worth examining whether some governance scheme developed for stock companies are effective at cooperative financial institutions. Our results showed that the presence of outside directors at co-ops (“Shinkin Banks”) contributes to an improvement in efficiency.
Keywords: Corporate Governance, Outside Directors, Cooperative, Shinkin.
JEL Classification: G21
Suggested Citation: Suggested Citation