This study aims to investigate the potential link between prior-year banking performance and a change in the number of board of directors’ meetings in the current year and understand how changes in board meetings might impact subsequent bank performance.
The sample is drawn from 42 banks in Bangladesh from 2011 to 2019, and the data are analyzed using multivariate regressions. Potential endogeneity concerns are addressed using the entropy balance matching approach.
This study presents two key findings: first, the change in the number of board meetings in a year is influenced by bank performance in the last year, where poor performance leads to more meetings, and second, an increase in the number of board meetings contributes to enhanced bank performance.
This is one of the few studies to explore the reasons behind changes in the board of directors’ meeting behavior and whether such changes benefit banks. The results highlight that a decline in bank performance prompts the board to meet more often, and this proactive response helps banks overcome the poor performance problem. Thus, this study underscores the significance of the board’s adaptive behavior in tailoring the number of meetings according to the bank’s specific circumstances.
