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Sustainable Entrepreneurship in China pp 23–54Cite as

Palgrave Macmillan

Corporate Governance and Diversity in Chinese Banks

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Abstract

The world economy experienced a deep recession in the wake of the global financial crisis in 2008. Early warnings of a crisis began in the United States after the credit boom in mid-2007 and the meltdown of subprime mortgages and securitized products (Ivashina and Scharfstein, 2010).The crisis hit the vast majority of developed economies by the contagion effect. Consequently, a large number of financial institutions collapsed or were bailed out by governments during the global financial crisis, for example, RBS and HBOS in the United Kingdom, and Dexia, Fortis, Hypo Real Estate, and UBS in continental Europe (Erkens et al., 2012).Therefore, major concerns about bank governance were raised—in particular, board composition and directors’ characteristics, board independence, and risk management, and improving these was seen as a means of improving financial performance (Jose et al., 2011).

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Authors
  1. Hisham Farag
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  2. Christine Mallin
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Editor information

Douglas Cumming Michael Firth Wenxuan Hou Edward Lee

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© 2015 Douglas Cumming, Michael Firth, Wenxuan Hou, and Edward Lee

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Farag, H., Mallin, C. (2015). Corporate Governance and Diversity in Chinese Banks. In: Cumming, D., Firth, M., Hou, W., Lee, E. (eds) Sustainable Entrepreneurship in China. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137412539_2

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