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dc.contributor.advisorSherif, Doctor Mo
dc.contributor.authorElshinawy, Mohamed
dc.date.accessioned2020-03-06T15:36:51Z
dc.date.available2020-03-06T15:36:51Z
dc.date.issued2019-12
dc.identifier.urihttp://hdl.handle.net/10399/4161
dc.description.abstractIt is well established that banks play a vital role in global economies. However, governance and behavioural agents have received less attention in the banking industry. This thesis aims to address the impact of board diversity, sentiment, and herding behaviour on the UK banking industry. It investigates how bank performance is affected by CEO education, gender diversity, and nationality diversity on the board of directors of the UK banks. Using panel data analysis, the study findings provides evidence on the significant positive relationship between board gender diversity and bank performance measured by Tobin’s Q; insignificant negative impact of nationality diversity and bank performance measured by Tobin’s Q, Return on Assets, and Return on Equity; significant positive impact of CEO educational background on bank performance measured by Tobin’s Q. Moreover, it examines how household, managerial, and economic sentiments affect the deposit growth and interest rates in the UK market. Employing the Granger-Causality test, the study findings suggest that household sentiment causes deposit growth in the household deposits; managerial sentiment causes changes in the institutional deposit growth; economic sentiment causes deposit growth in both individual and institutional levels. Furthermore, this thesis investigates the impact of herding behaviour on bank lending decisions and examine the motives and triggers behind this herding behaviour. Using two herding proxies (Lakonishock, Shleifer and Vishny (LSV) and Frey, Herbst and Walter (FHW), this study provides novel evidence on the existence of herding behaviour across the UK commercial banks; it shows how herding behaviour varies across various types of loan categories; it also shows that herding behaviour is driven by macroeconomic and bank-specific conditions. This thesis has several implications for households, regulators, practitioners and researchers. First, it provides households with evidence on the importance of managerial sentiment in predicting future deposit growth and interest rates. Second, it is important for regulators who are concerned with the relationship between managers and consumers. Third, the thesis offers insights and provides important solutions to empower and enhance credit check procedures. It also offers insights to the policymakers on reducing the information gap between the lenders and borrowers and minimise the opaqueness across different types of banks. Fourth, it contributes to research concerned with corporate governance and how financial institutions should be managed following the Basel committee advice, which called for more research in bank governance field.en
dc.language.isoenen
dc.publisherSocial Sciencesen
dc.publisherHeriot-Watt Universityen
dc.titleDiversity, behavioural anomalies and bank performance : evidence from the UKen
dc.typeThesisen


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