scholarly journals Corporate governance practices in the banking sector of Bangladesh: do they really matter?

2017 ◽  
Vol 12 (1) ◽  
pp. 27-35 ◽  
Author(s):  
Samiul Parvez Ahmed ◽  
Rahatul Zannat ◽  
Sarwar Uddin Ahmed
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Financial Sector ◽  
Jel Classification ◽  
Data Availability ◽  
Time Period ◽  
Governance Practices

A well governed institution is expected to use its resources optimally and, thus, perform more efficiently and contribute positively to economic development of a nation. However, often, it can be seen that poor management of the stakeholders leads to less than optimal strategic directions for an institution. Due to recent global financial crisis and rising issues of the Bangladeshi banking sector, corporate governance is one of the factors that have gained considerable attention. Recent drive of the governance issues of the banking sector of Bangladesh is expected to bring positive change in the financial sector and, hence, it is crucial to assess whether complying with governance codes leads to desired outcome or not. Specifically, the main purpose of this study is to examine the relationship between performances of commercial banks with corporate governance factor along with some internal and macroeconomic variables. Thus, the listed commercial banks in the Dhaka Stock Exchange (DSE) of Bangladesh were considered for the study. Subsequently, considering data availability of the time period (2011-2014), 29 listed commercial banks in the DSE have been considered and, hence, Ordinary Least Squared (OLS) regression models were used through Eviews 8.0 for analyzing the data. Though the study shows a positive relation between corporate governance and performances of banks, the statistical insignificance of the relation raises concern regarding various issues of corporate governance in the financial sector of Bangladesh. Keywords: corporate governance, financial institutions, performances of commercial banks. JEL Classification: G21, G30, G38, G39, O16

Weak-form Efficiency After Global Financial Crisis: Emerging Stock Market Evidence

2017 ◽  
Vol 16 (1) ◽  
pp. 90-113 ◽  
Author(s):  
Emenike Kalu O.
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Weak Form ◽  
Jel Classification ◽  
Fundamental Analysis ◽  
Lm Test ◽  
Weak Form Efficiency

This article investigates weak-form efficiency of the Nigerian Stock Exchange (NSE) and its sectors for the post-global financial crisis period using autocorrelation test, Ljung–Box Q test, McLeod-Li portmanteau test and ARCH-LM test. The descriptive statistics show that the returns of NSE and its sectors are positive. The results show that (i) investors can only predict banking sector return using superior fundamental analysis of their intrinsic values; (ii) prediction of the NSE 30 and Shari’ah equities sector returns require nonlinear model and fundamental analysis and (iii) consumer goods sector and oil and gas sector may be predicted using both technical and fundamental analyses. JEL Classification: G11, 14

scholarly journals PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP PROFITABILITAS PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI PERIODE 2009-2013

2014 ◽  
Vol 3 (1) ◽  
pp. 77
Author(s):  
Riana Christel Tumewu ◽  
Stanly Alexander
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Stock Exchange ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Independent Variable ◽  
Simple Regression

ABSTRAK Sejak krisis ekonomi tahun 1997 pelaksanaan tata kelola perusahaan yang baik, atau lebih dikenal dengan Good Corporate Governance (GCG) menjadi isu yang mengemuka di Indonesia. Akibat buruknya tata kelola perusahaan di Indonesia pada masa itu, menyebabkan perekonomian jatuh. Sehingga setiap orang setuju untuk mengcover kesulitan indonesia dimulai dengan tata kelola perusahaan. Objek dari penelitian ini yaitu dampak dari penerapan good corporate governance terhadap ROE. Tujuan dari penelitian ini adalah untuk mengetahui tentang pengaruh penerapn good corporate governance pada kinerja keuangan perusahaan. Sampel dalam penelitian ini adalah perusahaan sektor perbankan yang terdaftar di BEI (Bursa Efek Indonesia) dalam periode 2009-2013. Jumlah sampel yang digunakan sebanyak 16 perusahaan yang diambil melalui purposive sampling. Metode analisis dari penelitian ini menggunakan regresi berganda dan regresi sederhana program SPSS 20. Kata Kunci: Good Corporate Governance, Profitabilitas  ABSTRACT Since the economic crisis 1997 the implementation of good corporate governance being an issue in indonesia. The bad thing of governance’s company in those days causing indonesian economy being slump. So, every one agree to recovered from adversity, indonesia have to start with governance good corporate. The main objective of this research was to determine the effect of implementation of good corporate governance (GCG) to return on equity. The purpose of this research is to know about the influence of empirical evidence of Good Corporate Governance practices to the company's financial performance. The independent variable in this research is the implementation of GCG and the dependent variable is the financial performance using a ratio of profitability. The sample in this study were banking sector companies listed in Indonesian Stock Exchange (IDX) in the periode 2009-2013. The number of sample used were 16 companies listed were taken by purposive sampling. The method of analysis of this research used simple regression with SPSS 20 Program. Keyword: Good Corporate Governance, Profitability

Corporate Governance Practices and Non-performing Loans of Banking Sector of Bangladesh: A Panel Data Analysis

2019 ◽  
Vol 9 (2) ◽  
pp. 12
Author(s):  
Asia Khatun ◽  
Ratan Ghosh
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Good Governance ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Developed Countries ◽  
Governance Practices ◽  
Code Of Corporate Governance

This paper tries to inspect the association and relationship between corporate governance determinants and level of non-performing loan (NPL) of listed commercial banks in Bangladesh. Recently Banks are facing a problem of default loan. This default loan or NPL may reduce the loan giving capacity of the Banks and it may decrease the economic growth of a country. Moreover, there is less research to find out the implication of good governance on the level of NPL in banking sector of Bangladesh than that of developed countries. Here, data from thirty listed commercial banks for the year 2008-2017 (10 years) are taken to explore the rapport between the corporate governance variables and NPL. Random Effect GLS regression method is used to analyze the data. Findings told that commercial banks follow the code of corporate governance on a comply basis however their relationship with NPL is positively significant within the taken determinants of corporate governance. It is expected that, banks with good quality management may ensure the quality of loan and it will reduce the level of NPL.

scholarly journals Effects of Corporate Governance on Financial Performance of Commercial Banks in Nigeria

2021 ◽  
Vol 2 (1) ◽  
pp. 13-23
Author(s):  
Panan Danladi Gwaison ◽  
Livinus Nkuri Maimako
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Commercial Banks ◽  
Audit Committee ◽  
Banking Sector ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Governance Structure ◽  
Secondary Source ◽  
Least Squares Regression

In most developing countries, several cases of collapses or failure in the banking sector were witnessed. Nigeria had witnessed several cases and collapsed in the banking sector. This study investigated the effects of corporate governance on the financial performance of commercial banks in Nigeria. The study used the survey research design. A secondary source of data was used for this research. The data were collected from financial statements of the five (5) commercial banks selected from the Nigerian Stock Exchange listing for fourteen financial years (2003 – 2017). The study utilized the panel Least Squares Regression Analysis as the method. The result indicated that board size had significant effects on financial performance (ROA) of commercial banks in Nigeria, board composition had significant effects on financial performance (ROA) of commercial banks in Nigeria, board gender diversity had significant effects on financial performance (ROA) of commercial banks in Nigeria, the audit committee has no significant effects on financial performance (ROA) of commercial banks in Nigeria, and board independence had significant effects on financial performance (ROA) of commercial banks in Nigeria. The study, therefore, concludes that the weak corporate governance structure in Nigeria contributed immensely to the recent crisis experienced in the Nigerian banking sector. The study recommended that banks develop and implement strategic training for board members and senior bank managers. Nigerian banks should appropriately adopt the international codes of corporate governance to meet the need of the Nigerian environment, among other recommendations.

scholarly journals Kryzysy finansowe a bezpieczeństwo działalności banków komercyjnych

2015 ◽  
pp. 85-96
Author(s):  
Emilia Stola
Keyword(s):  
Interest Rates ◽  
Financial Crises ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Economic Recession ◽  
The United States ◽  
Negative Influence ◽  
Fiscal Discipline

Financial crises which cause stagnation and economic recession are an inevitable part of economic reality of the world. Along with the globalization of financial markets both the number of crises and their reach increased. The last of the greatest economic breakdowns was “Crisis of the Euro” and “Global Financial Crisis 2008” which started the United States of America. They were caused by too gentle monetary and fiscal policy, which resulted in low interest rates and a lack of the budget and fiscal discipline. The aim of this study was to estimate and the evaluate interdependencies between the negative influence of economic-financial crises and the safety of commercial banks functioning in the Polish banking sector. Undertaken examinations allowed to check whether there are any statistical relations between the solvency ratio (reflecting the level of the bank safety) and the participation of irregular amounts due in the volume of credit on one hand and the changes of GDP and changes of stock exchange indices on the other. The analysis was carried out on data concerning commercial banks functioning in Poland and quoted on the Warsaw Stock Exchange.

scholarly journals Corporate Governance and Bank Competition Empirical Study on the Jordanian Commercial Banks Listed in Amman Stock Exchange over the Period (2001-2014)

2015 ◽  
Vol 7 (2) ◽  
pp. 227
Author(s):  
Abdulrahman Hashem ◽  
Fadi Mousa Ayoub ◽  
Haitham Bani Ata
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
The Political ◽  
Bank Competition ◽  
Whitney Test ◽  
Insignificant Effect ◽  
Amman Stock Exchange

<p>The purpose of this paper is to identify the effect of corporate governance implementation on the commercial banks’ competition in Jordan. Bank competition is tested by using Panzar and Rosse H statistics model and the researchers applied it on the collected data into two periods of time (2001-2007 and 2008-2014), taking into consideration that corporate governance was first implemented in the Jordanian banking sector on 31/12/2007. The researchers used Mann-Whitney Test to compare the results of both time phases. The results showed insignificant effect of corporate governance on bank competition that can be linked to certain reasons including the immaturity of corporate governance’s implementation in the Jordanian banking sector, the socio political upheavals that affected Jordan, and the differentiation of bank services between banks led to a more monopolistic behavior. This paper urges other researchers and practitioners to take their role into updating and modifying corporate governance to positively enhance bank competition taking into account the political turbulences in the neighboring countries and the movement of cash across the region and passing the country. </p>

scholarly journals Performance Evaluation of the Jordanian Commercial Banks Based on Bankometer Parameters

2017 ◽  
Vol 9 (12) ◽  
pp. 249
Author(s):  
Tawfiq Ahmed Mousa
Keyword(s):  
Performance Evaluation ◽  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Model Analysis ◽  
Vital Role ◽  
The Global Financial Crisis

Due to the vital role of banking sector in every country’s economy, the sustainability of this sector became a priority especially in the aftermath of the global financial crisis of 2007-2008. The main objective of this study is to assess the soundness of Jordanian commercial banks listed in Amman’s Stock Exchange (ASE) during the period (2008-2015). The study applied the Bankometer model analysis and concluded that all banks under study are safe in terms of all parameters of the model despite the slowdown of economy and the regional instability.

scholarly journals Assessing the influence of Corporate Governance, Ownership Concentration and Bank Size on the Firm's Value and Bank's Performance: Evidence from Pakistan

2020 ◽  
Vol V (IV) ◽  
pp. 34-46
Author(s):  
Ihtesham Khan ◽  
Wisal Ahmad ◽  
Syed Arshad Ali Shah
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Ownership Structure ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
The Impact

This empirical study examines the impact of corporate governance, ownership structure and bank size on the bank's performance and firm's value of the banking sector in Pakistan. The data is extracted for 17 commercial banks listed at the Pakistan Stock Exchange for the period of 2006-2016. The results show that corporate governance and bank size positively affect bank's performance while ownership concentration does not have any effect on bank's performance. Moreover, firm's value is positively affected by ownership concentration, while it is not affected by corporate governance and bank size.

Corporate Governance Mechanisms in Commercial Banks of Nepal

2020 ◽  
Vol 9 (1) ◽  
pp. 120-134
Author(s):  
Ravindra Prasad Baral
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Banking Sector ◽  
System Stability ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Transparency And Disclosure ◽  
Director Independence

Corporate governance in banking sector has received great attention among policymakers, practitioners and academicians in Nepal due to governance failures in some financial institutions in recent period. This study attempts to examine the corporate governance mechanisms adopted by Nepalese commercial banks by using a panel data of 30 commercial banks from 2012 to 2016. The internal corporate governance mechanisms are board structure and composition, board committees, director independence, transparency and disclosure, director remuneration, and shareholders rights. The study employs ANOVA test to examine differences in corporate governance mechanisms among state-owned, joint venture, and domestic banks. The study findings reveal that the corporate governance practices in financial institutions of Nepal is somewhat satisfactory; however, significant improvements are required especially in case of state-owned banks and local private banks. In order to achieve the policy of government of Nepal to enhance financial system stability, one of the major areas for policy focus should be to promote enhancement of corporate governance standards in the financial institutions as the stability of the banking sector depends largely on corporate governance practices they adopt. Promoting director independence, improving transparency and disclosure, and enhancing shareholders’ right are found to be important for improving standard of corporate governance in Nepal.

scholarly journals A qualitative analysis of the internal audit function in the banking sector

2016 ◽  
Vol 11 (4) ◽  
pp. 161-168 ◽  
Author(s):  
Rasoava Rijamampianina
Keyword(s):  
Capital Markets ◽  
Audit Committee ◽  
Success Factors ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Internal Audit ◽  
Financial Sector ◽  
Jel Classification ◽  
Internal Auditors ◽  
Internal Audit Function

In South Africa, the financial sector contributes approximately 10.5% to the country’s gross domestic product (GDP). Although the 2007-2009 global financial crisis did not directly impact the domestic market, it threatened the profitability of the financial sector and triggered changes that affected the role of the internal audit function. In particular, stakeholders’ expectations from the function have significantly increased. Against this background, the study seeks to identify the key success factors of performing internal audit reviews of capital markets business areas within the big four South African banks. For this purpose, in-depth interviews with experienced internal auditors, risk managers and traders were carried out. The study suggests several implications and recommendations for the risk management, internal audit and audit committee functions that can also be adopted by interested parties from non-financial institutions. Keywords: internal audit, value creation, skills, stakeholders, capital markets. JEL Classification: G31, M42

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