Do Academic Bank Leaders Reduce Bank Non-Performing Loans?

TY - JOUR

T1 - Do Academic Bank Leaders Reduce Bank Non-Performing Loans?

AU - Chang, Sara Xiao

AU - Wang, Yang

AU - Shu, Xia

AU - Fifield, Suzanne

N1 - © 2025 The Author(s).

PY - 2025

Y1 - 2025

N2 - This paper examines the impact of bank leaders with academic professorship on the level of bank non-performing loans. Using a hand-collected dataset of academic leaders in Chinese commercial banks from 2007 to 2020, the paper provides robust evidence that banks with professor leaders can effectively reduce the amount of non-performing loans. This negative relationship is more pronounced if the academic bank leaders are female, young, and have an overseas educational background. Overall, our findings call for the recruitment of more academic bank leaders as this may have the effect of lowering banks’ risk.

AB - This paper examines the impact of bank leaders with academic professorship on the level of bank non-performing loans. Using a hand-collected dataset of academic leaders in Chinese commercial banks from 2007 to 2020, the paper provides robust evidence that banks with professor leaders can effectively reduce the amount of non-performing loans. This negative relationship is more pronounced if the academic bank leaders are female, young, and have an overseas educational background. Overall, our findings call for the recruitment of more academic bank leaders as this may have the effect of lowering banks’ risk.

KW - Academic leaders

KW - bank

KW - non-performing loans

KW - Professor

U2 - 10.1080/1351847X.2025.2585964

DO - 10.1080/1351847X.2025.2585964

M3 - Article

SN - 1351-847X

VL - 31

SP - 1681

EP - 1711

JO - European Journal of Finance

JF - European Journal of Finance

IS - 13

ER -