scholarly journals Corporate governance and banks’ productivity: evidence from the banking industry in Bangladesh

2020 ◽  
Vol 13 (2) ◽  
pp. 615-637 ◽  
Author(s):  
Md. Harun Ur Rashid ◽  
Shah Asadullah Mohd. Zobair ◽  
Md. Asad Iqbal Chowdhury ◽  
Azharul Islam
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Random Effect ◽  
Least Square ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Regulatory Body ◽  
Data Envelopment ◽  
Ordinary Least Square ◽  
The Impact

Abstract Though remarkable literature exploring productivity and efficiency has emerged since the last half of the previous century, but dearth studies have been found in showing the impact of corporate governance on banks’ productivity. The study aims to investigate the banks’ productivity and its relationship with corporate governance. For this purpose, the study examines the productivity of 30 listed banks of Bangladesh deploying a Malmquist Productivity Index (an extension of Data Envelopment Analysis) with a panel data covering the period of five years from 2013 to 2017. The empirical results show that the average productivity of the banks is 1.03%. Finally, the ordinary least square (OLS), fixed effect (FE), and random effect (RE) regression were run separately. The research outcomes show that the productivity of the Bangladeshi banks is significantly influenced by financial performance, ownership structure, and board characteristics. The study provides the researchers, academicians, management of the banks, and regulatory body a new insight of how corporate governance influences the banks’ productivity so that they can formulate a better policy to generate more productivity.

scholarly journals Determinants of Total Factor Productivity of Libyan banks 2004 – 2010

2016 ◽  
Vol 6 (3) ◽  
pp. 690-702
Author(s):  
Khalad M. S. Alrafadi
Keyword(s):  
Data Envelopment Analysis ◽  
Regression Model ◽  
Total Factor Productivity ◽  
Least Square ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Ordinary Least Square

The paper examines the determinants of Total Factor Productivity (TFP) of Libyan banks by employing Data Envelopment Analysis (DEA) based Malmquist Productivity Index (MPI) and Ordinary Least Square (OLS) estimation regression model for the period 2004 – 2010. For estimate TFP and determinants in this study we used DEAP 2.1 software and we used Evies 7 software for estimating determinants. The results showed that our variables which used in this study are not significant related to TFP.

Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia

1970 ◽  
Vol 5 (1) ◽  
pp. 77
Author(s):  
Mahadzir Ismail ◽  
Saliza Sulaiman ◽  
Hasni Abdul Rahim ◽  
Nordiana Nordin
Keyword(s):  
Efficiency Score ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Master Plan ◽  
Before And After ◽  
Domestic Banks ◽  
The Impact ◽  
Efficiency And Productivity

The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size.

scholarly journals Corporate Governance and Firm’s Profitability: An Emerging Economy-based Investigation

2019 ◽  
Vol 12 (1) ◽  
pp. 71-93 ◽  
Author(s):  
Mohammad Rajon Meah ◽  
Nasir Uddin Chaudhory
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Least Square ◽  
The Other ◽  
Board Size ◽  
Ordinary Least Square ◽  
Female Directors ◽  
Director Ownership ◽  
The Impact

This article aims to investigate the impact of corporate governance through board size, female directors, family duality and director ownership on firm’s profitability in Bangladesh. It’s a quantitative study on 110 manufacturing firms listed in Dhaka Stock Exchange. Multivariate pooled Ordinary Least Square (OLS) regressions are applied on 512 sample-year observations from the year 2013 to 2017 to test the hypotheses in the study. On one side, the results reveal that larger board size and female directors on board are positively associated with firm’s profitability, which in turns helps to enhance firm’s profitability. On the other side, it is also found in the results that percentage of shares held by the directors and family duality are negatively related to firm’s profitability and thus reduces firm performance. The outcomes of this study advocate the policymakers to formulate a policy by addressing the percentage of shares held by the directors to be kept at a certain level.

Ownership and Control of Widely and Closely Held Firms in India

2017 ◽  
Vol 21 (4) ◽  
pp. 449-460 ◽  
Author(s):  
Balakrishnan Kavya ◽  
Santhakumar Shijin
Keyword(s):  
Corporate Governance ◽  
Cash Flow ◽  
Firm Size ◽  
Ownership Structure ◽  
Critical Issue ◽  
Least Square ◽  
Ordinary Least Square ◽  
Concentrated Ownership ◽  
Cash Flow Rights ◽  
And Control

The fundamental dichotomy between dispersed and focused ownership system has been a critical issue in the field of corporate governance. The concentrated ownership mainly controlled by families or state give more supremacy to firms over cash-flow rights. This study investigates the ownership structure of Indian corporates primarily vested in the hands of promoter and promoter groups. Using ordinary least square estimates, the study identifies the determinants of concentrated ownership structure. Further, the study attempts to provide evidence on the convergence of the controls in Indian firms, and thereby assess the wealth concentrated amidst few. The findings of the study reveal contrasting evidence against widely affirmed notion in finance literature by Berle and Means (1932) that widely held firm is the organizational framework of large enterprises. In contrast, our findings reveal that concentrated ownership holds large corporations. Moreover, in addition to the constituents such as firm size, the number of stock markets and geographic ownership also contribute towards a significant impact on concentrated ownership.

Foreign investors? The effects of the property structure and legal system as mechanisms of corporate governance in Brazilian regulated companies

2019 ◽  
Vol 19 (5) ◽  
pp. 1082-1116
Author(s):  
Ruan Carlos dos Santos ◽  
Lidinei Éder Orso ◽  
Mônica Cristina Rovaris Machado ◽  
Antonia Márcia Rodrigues Sousa
Keyword(s):  
Corporate Governance ◽  
Legal System ◽  
Ownership Structure ◽  
Control Measures ◽  
The Other ◽  
Regulatory Body ◽  
Foreign Investors ◽  
Content Type ◽  
Governance Practices ◽  
The Impact

Purpose This paper aims to contribute to research on corporate governance in regulated sectors, with emphasis in the field of activity of foreign investors through the ownership structure and legal system that regulates companies in Brazil. Design/methodology/approach In the first moment, the investigation had a quantitative approach of relational nature. Based on the data about the valuation of actions, statistical methods were applied to a secondary database containing measurable information provided by the organizations that operate the Brazilian stock-market and documentary evidence provided by the companies. In the second moment, a qualitative approach was adopted, resorting on the use of semi-structured interviews with investors and agents of the sector. Findings The results lead to two paths: presenting the perspective that foreign investors play a key role in improving governance practices because foreign ownership mitigates agency problems, provides adequate follow-up and optimizes the use of corporate resources; and evidencing the existence of a mitigation of operational risks in the face of the various obligations imposed by the concession contract with the regulatory agency, without direct interference under the ownership structure of regulated companies. Research limitations/implications The literature portrays a distinct economic scenario in Brazil, where stock control is pulverized and mechanisms of corporate governance and scope of action of investors and regulated sectors are well-defined and implemented. Practical implications A great part of the studies from this field discusses the same object: the impact of the adoption of corporate governance mechanisms on selected efficiency indicators or on the value of the companies' actions. This investigation, on the other hand, targeted a differentiated approach so that its contribution would lie in the investigation under the influence of the regulation on the legal attributions and the performance of the investors how many conflicts between the other shareholder/regulatory body, as the control measures import by the regulatory agent the concessionaires of the Brazilian highways and transportation sector. Social implications The identification of the presence of foreign investors as a determinant for: better performance of companies in Brazilian regulated sector in terms of market valuation; better mitigation of requirements with the regulatory framework for the agencies that regulate the concession sector, targeting a reduction in the asymmetry of information and transparency among all stakeholders. Originality/value The fact that Brazil is an emerging country that lacks a rigid legal system and corruption-control measures in corporate environments and public sectors, stresses the importance of the application of the “Best Codes of Corporate Governance Practices” in the main developed countries. This also stresses the need for effective supervisory bodies that contribute to a better financial performance of companies, guaranteeing investors the legal system.

scholarly journals EFFICIENCY AND PRODUCTIVITY CHANGE ACROSS THE ECONOMIC SECTORS IN LITHUANIA (2000–2010): THE DEA–MULTIMOORA APPROACH

2014 ◽  
Vol 19 (Supplement_1) ◽  
pp. S191-S213 ◽  
Author(s):  
Tomas Baležentis ◽  
Algimantas Misiūnas ◽  
Alvydas Baležentis
Keyword(s):  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Economic Sectors ◽  
Services Sector ◽  
Intermediate Consumption ◽  
The Impact ◽  
Efficiency And Productivity

Reasonable strategic management requires the complex assessment of the regulated area. This study, thus, presents a multi-criteria framework for frontier assessment of efficiency and productivity across the Lithuanian economic sectors throughout 2000–2010. The data envelopment analysis was employed to estimate efficiency in terms of an output indicator (value added) and input indicators (intermediate consumption, capital consumption, and remunerations). Furthermore, the decomposition of the Malmquist productivity index enabled to describe the impact of frontier shifts and catch-up effect on the overall change in efficiency. The multi-criteria decision making method MULTIMOORA aggregated different indicators of efficiency and productivity and thus resulted in the ranking of the economic sectors. The analysis suggests that services sector was the most efficient one, whereas manufacturing was second best. Certain branches of manufacturing, namely pharmaceutical, wood, food, and furniture industry, were rather efficient.

New sights for measuring the relations among environmental information disclosure, economic performance and corporate governance

2020 ◽  
pp. 002072092098368
Author(s):  
Che Siqi ◽  
Zhu Wenzhong ◽  
Li Xuepei ◽  
Pan Wen-Tsao
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Economic Performance ◽  
Information Disclosure ◽  
Environmental Information ◽  
Least Square ◽  
Environmental Disclosure ◽  
Cross Sectional ◽  
Ordinary Least Square ◽  
Environmental Information Disclosure

Environmental information disclosure is gradually gaining popularity, especially under the severe environmental pollution. Analyzing the relations among environmental information disclosure (EID), corporate governance and economic performance by employing a cross-disciplinary and a cross-sectional approach is a new start for improving environmental disclosure. The Ordinary Least Square results suggest that, firstly, firm size and ownership structure have significant positive relations with EID and economic performance. Secondly, the factors of corporate governance including the equity concentration ratio, logarithm of management incentive, logarithm of management shareholding, the board size and the number of directors, all have positive influences on EID. Thirdly, corporate governance has an impact on firm’s economic performance. Lastly, this study reveals that EID positively affects firm’s financial performance—solvency, operational capability and profitability. It is expected that this study can highlight the importance of environmental awareness of professional genre and enhance the environmental disclosure.

scholarly journals Evaluation of the effectiveness of the National Benchmarking Initiative (NBI) in improving the productivity of water services authorities in South Africa

Water SA ◽  
2018 ◽  
Vol 44 (1 January) ◽  
Author(s):  
Warren Brettenny ◽  
Gary Sharp
Keyword(s):  
South African ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Water Services ◽  
Water Shortages ◽  
Policy Makers ◽  
Use Of Data ◽  
The Impact ◽  
Public Demonstrations

Water shortages, public demonstrations and lack of service delivery have plagued many South African water services authorities (WSAs) for a number of years. From 2004–2007 the National Benchmarking Initiative (NBI) was implemented to improve the performance, efficiency and sustainability of WSAs. The current study demonstrates the use of data envelopment analysis (DEA) and the Malmquist productivity index (MPI) for the assessment of the effectiveness of the NBI in achieving these goals. Furthermore, the MPI is used to assess the impact that the termination of the NBI had on the efficiency of the WSAs in the years that followed. In conclusion, the MPI is identified as a valuable tool for regulators and policy makers that wish to assess the performance of their benchmarking initiatives.

scholarly journals PENGARUH MOBILE BANKING TERHADAP PROFITABILITAS BANK DI BURSA EFEK INDONESIA

Profit ◽  
2021 ◽  
Vol 15 (01) ◽  
pp. 95-103
Author(s):  
Nur Imamah ◽  
Dinda Ayu Safira
Keyword(s):  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Least Square ◽  
Mobile Banking ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Effect Model ◽  
And Control ◽  
The Impact

This study aims to determine the impact of mobile banking on bank profitability in Indonesia. The research sample consisted of 27 banks listed on the Indonesia Stock Exchange during 2015-2018. This study uses the dependent variable-return on assets (ROA), return on equity (ROE) and net profit margin (NPM), independent variable-mobile banking (m-banking), and control variables. This type of research is explanatory research by using panel data regression analysis or ordinary least square (OLS) method. The findings from the random effect model or generalized least square in this study are that mobile banking has a positive effect but statistically insignificant on ROA, ROA, and NPM. This implies that mobile banking in Indonesia can increase the profitability of banks by further increasing various digital innovations.

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