Multiple directorships and the extent of loan loss provisions: Evidence from banks in South Asia

• Directors with multiple directorships tend to delay the recognition of loan loss provisions. A U-shaped relationship exists between directors and provision. Banks moderately busy directors’ provisions more than banks fewer time-poor over-boarded directors. Moderately achieve profitability targets while maintaining their reputations indicates optimism about loans’ future. This paper examines whether affect extent banks' in South Asia. Our results indicate that Specifically, we find existence a provisions, indicating is pronounced case helps are robust terms accounting for endogeneity concerns, which addressed using two-stage least squares regression entropy-balancing methodology as well some alternative definitions ‘multiple directorships’ used literature.