scholarly journals Corporate Governance and Financial Performance of Nepalese Commercial Banks

2020 ◽  
Vol 13 (1) ◽  
pp. 40-50
Author(s):  
Mohan Prasad Sapkota
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Ownership Concentration ◽  
Positive Contribution ◽  
Board Meeting ◽  
Board Size ◽  
Leverage Ratio ◽  
The Impact

This paper focuses on determining the relationship between corporate governance and financial performance of Nepalese commercial banks as well as examining the impact of corporate governance on banks performance. The sample consists of 9 commercial banks for the 10 year period of 2008/09 to 2017/18. Corporate governance is considered as leverage ratio, board meeting, board size and ownership concentration had mixed results on banks performance measured by ROE. Evidence indicates that debt ratio, net interest margin and total assets have significant positive contribution on banks performance. Board meeting and liquidity have negative impact on banks performance. However, board size and ownership concentration have no significant contribution to the firm performance.

scholarly journals Corporate Governance dan Pengaruhnya terhadap Kinerja Keuangan Perusahaan

2019 ◽  
Vol 4 (2) ◽  
pp. 183-199
Author(s):  
Emilia Gie
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Financial Performance ◽  
Multiple Regression Analysis ◽  
Sampling Method ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Board Size ◽  
Agency Conflict ◽  
The Impact

Application of corporate governance in the company is a way to handle the agency conflict that impact to company’s financial performance The objective of this research is to analyses the impact of managerial ownership, board size, ownership concentration and debt toward fi nancial performance that measured by ROE. The population of this research is the manufacturer companies which listed at Bursa Efek Indonesia (BEI) over the fi ve years periods on 2009 until 2013. This research used purposive sampling method. The sample of this reseach consist of 90 companies that met the criteria. This study uses multiple regression analysis to see the contribution of each variable in influence financial performance of company. The results showed that: (1) managerial ownership is not signifi cant to eff ect fi nancial performance of company, (2) board size is not signifi cant to eff ect fi nancial performance of company, (3) ownership concentration is signifi cant to eff ect fi nancial performance of company, (4) debt is significant to effect financial performance of company

scholarly journals CORPORATE GOVERNANCE DAN PENGARUHNYA TERHADAP KINERJA KEUANGAN PERUSAHAAN

2019 ◽  
Vol 4 (2) ◽  
pp. 183-199
Author(s):  
Emilia Gie
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Financial Performance ◽  
Multiple Regression Analysis ◽  
Sampling Method ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Board Size ◽  
Agency Conflict ◽  
The Impact

Application of corporate governance in the company is a way to handle the agency conflict that impact to company’s financial performance The objective of this research is to analyses the impact of managerial ownership, board size, ownership concentration and debt toward fi nancial performance that measured by ROE. The population of this research is the manufacturer companies which listed at Bursa Efek Indonesia (BEI) over the fi ve years periods on 2009 until 2013. This research used purposive sampling method. The sample of this reseach consist of 90 companies that met the criteria. This study uses multiple regression analysis to see the contribution of each variable in influence financial performance of company. The results showed that: (1) managerial ownership is not signifi cant to eff ect fi nancial performance of company, (2) board size is not signifi cant to eff ect fi nancial performance of company, (3) ownership concentration is signifi cant to eff ect fi nancial performance of company, (4) debt is significant to effect financial performance of company

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

Do firm-specific risks affect bank performance?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Asad Mehmood ◽  
Hung Phu Nguyen ◽  
Tahar Tayachi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Content Type ◽  
Nonperforming Loans ◽  
Operational Risks ◽  
Bank Managers ◽  
The Impact

PurposeThe authors examine the impact of credit, liquidity and operational risks on the financial performance of commercial banks of South Asia.Design/methodology/approachData are extracted from DataStream of 76 commercial banks of four countries, i.e. Pakistan, India, Bangladesh and Sri Lanka for the period 2009–2018. The generalized method of moments (GMM) is used to analyze the results.FindingsAll three risks are significantly associated with financial performance. The authors find that Z-score positively affects the bank performance, whereas the nonperforming loans (NPLs) ratio has a negative impact on financial performance of bank. Liquidity risk analyses show the current and loan-to-deposit (LTD) ratios positively and negatively, respectively, affect financial performance. While operational risk positively affects financial performance. The authors further present the significant effects of joint occurrence of credit and liquidity risks on financial performance.Practical implicationsFor managing credit risk, banking management should ensure the policies for granting loans and timely reimbursement of the loan installments from customers. Bank managers should regularly monitor the liquidity position by maintaining the necessary levels of loans and deposits. Management should retain a healthy capital charge to meet operational risks.Originality/valueCredit, liquidity and operational risks are considered the most important categories of risk which are faced by financial institutions. To the best of the authors’ knowledge, this is the first study which investigates the impact of these risks on banks’ financial performance in selected South Asian countries. The results of this study have relevance and probable generalizability about the impact of risks on the performance of banks in emerging markets.

scholarly journals Pengaruh Mekanisme Corporate Governance Terhadap Kinerja Keuangan Badan Usaha

2010 ◽  
Vol 3 (2) ◽  
Author(s):  
Filia Puspitasari ◽  
Endang Ernawati
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Foreign Debt ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Outside Directors ◽  
Board Size ◽  
Corporate Governance Mechanism ◽  
The Impact

Nowdays, most researches in corporate governance field are conducted by researchers based on rising of many firms to become public corporation. According to this situation, they have to separate their functions on ownership and control of the firm. As result, it will arise agency conflict between owners and managers. The corporation enable solve the problem by apply the corporate governance mechanism optimally. This research is a replication research is conducted by Sanda et al (2005). It’s explained the specific study about the impact of corporate governance mechanism include managerial ownership, board size, outside directors, ownership concentration, and debt toward financial performance that measured by ROA, ROE, PER, and TOBINS’Q. The samples of this research are all corporations which listed at Bursa Efek Indonesia (BEI) by all sectors that delivered financial statement on time by regulation. The period of time in this research determined on 2005-2007. The model is extended by quadratic of managerial ownership, quadratic of board size, quadratic of ownership concentration, CEO foreign and firm size as control variables, and sectoral dummy. The result of this research explained that corporate governance mechanism simultaneously influence to ROA and ROE significantly. On partially, ROA is influenced by CEO foreign, debt, and firm size significantly. And ROE is inluenced by CEO foreign, firm size, and sector of basic industry significantly.

scholarly journals The financial impacts of board mechanisms on performance: The case of listed Moroccan banks

2021 ◽  
Vol 3 (2) ◽  
pp. 93-113
Author(s):  
Issam El Idrissi ◽  
◽  
Youssef Alami ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Return On Equity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Impact

Abstract Purpose: The present study examines the impact of corporate governance mechanisms on listed Moroccan banks' financial performance. Research methodology: This study investigates the relationship between listed banks' governance mechanisms and financial performance in the CSE for six years between 2014-2019. This study employs three performance measures, return on assets, return on equity, and Tobin's Q, to determine bank performance. This research uses the GMM EGLS approach to analyze data. In the first phase of this empirical research, we did use OLS, Fixed Effects, and Radom Effects regressions to show their inefficiency. Results: Our results portray that most board mechanisms have a negative impact on financial performance. In comparison, the audit committee and nomination & remuneration committee have a positive effect on financial performance. Limitations: Many qualitative and quantitative factors could influence financial performance and not only the used variables in this paper. Contribution: This research shows that the dynamic connection between corporate governance and financial performance is robust in the Moroccan banking context. Also, our study has important implications for establishing good corporate governance practices in emerging economies.

scholarly journals The Impact of Financial Performance, Financial Risk, Liquidity, and Corporate Governance on Corporate Value

2020 ◽  
Vol 1 (2) ◽  
pp. 154
Author(s):  
Yunita Karlina ◽  
Andreas Lako
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Risk ◽  
Negative Impact ◽  
Positive Impact ◽  
Linear Regression Analysis ◽  
Percent Level ◽  
Analysis Data ◽  
Corporate Value ◽  
The Impact

The purpose of this study is to analyze the impact of financial performance, financial risk, liquidity, and corporate governance (CG) on the corporate value in the period t0 and t+1. The proxy for financial performance, financial risk, liquidity, and corporate governance is respectively return on equity (ROE), debt to assets ratio (DAR), current ratio (CR), and corporate governance perception index (CGPI). The proxy for corporate value is price to book value (PBV). The method for analysis data is multiple linear regression analysis. The results show that financial performance has positive impact on the corporate value in the period t0 and t+1 on one percent level of significance. However, financial risk and liquidity have positive impact on the corporate value in the period t0 and t+1 but the impact is not statistically significant. CG shows different impact on the corporate value in the period t0 and t+1 in which it indicates negative impact in the period t0 but positive impact in the periode t+1. The impacts are however statistically insignificant. Generally, the results indicate that financial performance is the main factor that increases corporate value.

scholarly journals Research on the Impact of Green Credit on the Financial Performance of Commercial Banks

2021 ◽  
Vol 6 (1) ◽  
pp. 406
Author(s):  
Xingbang Yin
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Policy Recommendations ◽  
Short Term ◽  
Impact Mechanism ◽  
Specific Policy ◽  
Different Types ◽  
Heterogeneous Effect ◽  
The Impact

From the perspective of green credit, this paper makes a theoretical analysis of the impact of green credit on the financial performance of commercial banks. Based on the panel data of 15 commercial banks from 2012 to 2018, this paper makes an empirical analysis on the impact mechanism is empirically analyzed. The results show that in the short-term, green credit has a negative impact on the financial performance of commercial banks, and the adverse impact faced by small and medium-sized commercial banks is significantly higher than that of large commercial banks, showing a heterogeneous effect. This also reveals the effect of commercial banks in implementing green credit in commercial banks and reasons for low initiative and enthusiasm. In view of this, it puts forward specific policy recommendations for different types of commercial banks, and believes that they should effectively promote green credit business in terms of differentiated policy guidelines and increasing the training of interdisciplinary talents.

scholarly journals Corporate Governance and Financial Performance of Money Deposit Banks in Nigeria

2021 ◽  
Vol 7 (1) ◽  
pp. 75-98
Author(s):  
Bilqis Bolanle Amole ◽  
Ik Muo ◽  
Kamaldeen A. Lawal
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Negative Impact ◽  
Secondary Data ◽  
Least Square ◽  
Executive Directors ◽  
Study Results ◽  
The Impact

Purpose. The main cause of distress in the majority of Nigerian banks is poor corporate governance in the country. Corporate governance (CG) is a contemporary subject attracting the consideration of the corporate world, practitioners, consultants, academia and society at large. As a result, this study explores the financial performance (FP) of money deposit banks (MDBs) in Nigeria as a result of corporate governance put in. It went on to investigate the impact of board size and composition, as well as the audit committee, on bank financial performance. Methodology. A descriptive design method was adopted, while secondary data in the form of yearly financial reports of banks selected for the study were obtained and relevant documents via electronic search of databases. Descriptive statistics were used in analyzing the data and an econometric model of panel least square (PLS) regression test was employed for the study. Findings and Implication. The findings affirmed that the correlation between size of board of directors and bank performance was significant, however negative. The results of the study show that the board of directors (BOD) composition significantly influences the FP of MDBs. The study results further reveal that the correlation between size of the audit committee (AC) and FP of MDBs is significant and also a negative one. As a result, based on the empirical findings of the study, it is concluded that CG has a statistically significant influence on the FP of Nigeria’s listed money deposit banks. Mechanisms such as the large size and composition of the board as well as the size of the audit committee encourage a negative impact on the FP. In line with the foregoing, the study recommended that an effort be made to improve CG, in the sense that the number of directors on board should be kept to a desirable level, and that the ratio of executive directors to non-executive directors, as well as the size of the audit committee, is kept at an optimal level.

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