THE ADJUSTMENTS OF CORPORATE GOVERNANCE MECHANISMS IN CANADIAN BANKS FOLLOWING REGULATORY CHANGES

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Michael Maingot, Daniel Zéghal

DOI:10.22495/cocv6i2c4p3

Abstract

The recent scandals on corporate governance have forced the regulatory bodies to issue new corporate governance mechanisms. These new governance mechanisms include banks. The purpose of this study was to observe changes to the boards of directors, to the committees reporting to the board, to the board of directors‟ independence and adoption to certain charters and checklists in Canadian banks for the periods covering the years 2002-2004. Our sample covers the eight largest domestic banks in Canada. Results indicate a reduction in board members and in the number of committees reporting to the board.
However, it increased supervision by increasing the number of board committee meetings. Most of the banks in our sample have separated the role of Chairman and CEO, thereby increasing the independence of the board. There was also an improvement in the adoption of a new charter for the board of directors.

Keywords: Corporate Governance, Regulatory Bodies, Board of Directors, Committees of the Board

How to cite this paper: Maingot, M., & Zéghal, D. (2008). The adjustments of corporate governance mechanisms in Canadian banks following regulatory changes. Corporate Ownership & Control, 6(2-4), 443-455. http://doi.org/10.22495/cocv6i2c4p3