The Research Department of Economics and Management of Tadbir Nikan Business, Marketing, and Finance Open 3092-6238 2 Serial Number 11 2025 09 01 Regression Model Analysis of Risky Behaviors and Board Characteristics on Bank Performance Using Profit Frontier Approach in Banks Listed on the Tehran Stock Exchange Regression Model Analysis of Risky Behaviors and Board Characteristics on Bank Performance Using Profit Frontier Approach in Banks Listed on the Tehran Stock Exchange 1 10 10.61838/bmfopen.243 EN Journal Article 2025 04 24 <p>This study aims to analyze the impact of risky behaviors and board characteristics on the performance of banks listed on the Tehran Stock Exchange using the profit frontier approach. This applied study used panel data from all listed banks in Tehran Stock Exchange between 2014 and 2023. The dependent variable, bank performance, was estimated through a stochastic frontier model using a Cobb-Douglas production function. Independent variables included credit, liquidity, and operational risks, as well as board-related variables such as size, independence, ownership, tenure, education, gender diversity, and CEO duality. Fixed-effects panel regression models were estimated using EViews software. Results of the first model indicated that only board independence had a significant positive effect on bank performance. Other structural board characteristics were not statistically significant. In the second model, risky behaviors had a significant negative effect on performance, while none of the interaction terms between risk and board features showed a significant effect. These findings suggest that internal governance mechanisms alone may not be sufficient to mitigate risky behavior in banks. Effective risk management in the banking sector requires synergy between internal governance structures, external supervision, and regulatory instruments. Board independence remains one of the few variables significantly improving bank performance in Iran's risk-intensive banking environment.</p> https://bmfopen.com/index.php/bmfopen/article/download/243/200