Role of Board Size in the Non-performing Loans of Cambodian Banking Industry

This study is an effort to examine the role of board size on the non performing loans of Cambodian banking sector. Undoubtfully non-performing loans are the biggest problem for the developing countries and Cambodia has no exception. However, we also include the role of the profits in the non-performing loans of the Cambodian banks. We have collected the whole banking non-performing loans from the central bank of Cambodia over the period of 10 years. We collected the data of Board size and performance has been collected from the annual published statements by the banks. After applying the regression analysis, we have found that board size has positive response to the non-performing loans of the Cambodian banks, this relationship explains the agency effect. More interestingly we also found that higher the profits the banks are more likely to generate more non-performing loans.

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