The influence of selected managerial quality and board composition variables on the performance of German cooperative banks – an analysis of age, gender, education and experience as well as board size and composition

Högel, Hermann Josef

• Publisher: Cuvillier Verlag
• Year: 2023
• Print ISBN: 9783736978560
• eBook ISBN: 9783736968561
• Edition: 1

The research investigates the impact of age, education, experience, gender, board size, and composition on the sustainability of German cooperative banks. These banks are vital for the German financial system and have significant regional importance. The research reveals that the age of executive board members and board size correlate with the bank's long-term performance. Banks with older executive board members tend to perform less effectively over time. Additionally, employing more than the legally required two executive board members negatively affects the bank's medium- and long-term performance. The study's results contribute to various management theories and can aid supervisory boards in selecting new executive board members based on performance criteria. Die Forschungsarbeit untersucht, wie Alter, Ausbildung, Erfahrung, Geschlecht, sowie Zusammensetzung und Größe des Vorstandsgremiums das langfristige Überleben deutscher Genossenschaftsbanken beeinflussen, welche aufgrund sinkender Gewinnmargen vom "Aussterben" bedroht sind. Diese Banken spielen eine bedeutende Rolle im deutschen Wirtschafts- und Finanzsystem. Neben der Abwicklung wichtiger Zahlungstransaktionen sind sie bedeutende Arbeitgeber. Darüberhinaus spielten sie während der Finanzkrise 2007/2008 eine entscheidende Rolle bei der Unterstützung des europäischen Bankensystems. Die agierenden Vorstände dieser Genossenschaftsbanken haben einen erheblichen Einfluss auf den Geschäftserfolg.Es wurden empirische Daten zu den soziodemographischen Faktoren der Vorstandsmitglieder, der Vorstandszusammensetzung, -größe und der Bruttogewinnmarge über 5 und 10 Jahre gesammelt und statistisch analysiert. Die Ergebnisse zeigen Zusammenhänge zwischen dem Alter der Vorstandsmitglieder, der Vorstandszusammensetzung und der Bruttogewinnmarge über die angegebenen Zeiträume. Diese Forschungsarbeit trägt zu verschiedenen Managementtheorien bei. Darüber hinaus bietet sie praktische Entscheidungskriterien für Aufsichtsräte bei der Auswahl neuer Vorstandsmitglieder.

Table of contents

• Abstract
• Acknowledgements
• Translations
• Text matches
• Abbreviations
• List of Tables
• Chapter 1: Introduction
• 1.1 Background and overview
• 1.2 Research context: German cooperative banks and board members
• 1.3 Factors influencing the sustainability of German cooperative banks
• 1.4 Reasons for the selection of specific factors
• 1.5 Research question, research aim and research objectives
• 1.6 The structure of this thesis
• Chapter 2: German cooperative banks
• 2.1 Introduction
• 2.2 The German banking landscape
• 2.3 A brief overview of the historical development of cooperatives
• 2.4 The unique nature of cooperative banks in the German banking landscape
• 2.5 Bodies of German cooperative banks
• 2.6 Summary
• Chapter 3: Theoretical background
• 3.1 Introduction
• 3.2 Governance theories
• 3.3 Manager qualities and competencies
• 3.4 Relationships between the theories
• 3.5 Performance and success
• 3.6 Manager specialisation
• 3.7 Summary
• Chapter 4: Literature review and development of hypotheses
• 4.1 Introduction
• 4.2 Characteristics of the executive board
• 4.3 Manager qualities
• 4.4 Summary
• Chapter 5: Research methodology
• 5.1 Introduction
• 5.2 Research philosophy
• 5.3 Research ethics
• 5.4 Data sample
• 5.5 Data variables –dependent, independent and control variables
• 5.6 Research methods
• 5.7 Summary
• Chapter 6: Results
• 6.1 Introduction
• 6.2 Statistical methodology
• 6.3 Multiple linear regression analysis with the variablesfrom Hypotheses 1–4
• 6.4 Small-scale bivariate and descriptive analysis with the variablesfrom Hypotheses 5 and 6
• 6.5 Large-scale multiple linear regression analysis with the variables from Hypotheses1–4 supplemented by the variables from Hypotheses 5 and 6
• 6.6 Control variables: unemployment rate, insolvency rate and gross valueadded
• Chapter 7: Discussion and conclusions
• 7.1 Discussion of findings
• 7.2 Complementing the tested hypotheses by qualitative statements
• 7.3 The limitations of the findings
• 7.4 Recommendations for future research
• 7.5 Practical implications and good practice recommendations
• 7.6 Answering the research question
• 7.7 Achievement of the research objectives
• 7.8 Concluding summary
• 7.9 Summary of key findings
• Appendices
• Appendix 1: Balance sheet and profit and loss account, providing basic financial information,according to the Deutsche Bundesbank
• Appendix 2: Profit and loss account – Example “Raiffeisenbank Bühlertal”
• Appendix 3: List of all cooperative banks in Germany as of the end of 2018
• Appendix 4: Cooperative banks within Europe – Size, structure and importance
• Appendix 5: Data sample
• Appendix 6: Ethical approval and ethics consent form
• Appendix 7: Summary of good practice recommendations
• Appendix 8: VIF values from the multicollinearity tests
• References