IMPACT OF FINANCIAL INNOVATION ON BANKS PERFORMANCE; MODERATING ROLE OF BOARD EXPERTISE

Abstract

Different invocation association between financial studies have been conducted regarding the and bank performance but the outcomes of these studies are inconsistent. The moderating effect of board expertise, has not been inspected by the researchers. In the light of this context, the following work contributes to highlight the importance of board expertise to explain the relationship between bank performance and financial innovation. This study contains a sample of twenty listed banks of Pakistan from the period ranging from 2009 to2022. The regressions analysis indicates an observable impact of board expertise on the characteristics of financial innovation. The banking sector of Pakistan responds positively to the adaption of financial innovation and technological advancements to increase the bank performance. This research will help the policy makers and the banking authorities to move towards money production because the increase in money production leads to better banking performance. The discussion here suggests that the impact of risk innovations, horizon innovations and specific innovations on returns and resources depends on the level of professional firms.