Corporate Governance and Efficiency of Rural and Community Banks (RCBs) in Ghana

Corporate governance crises that occur in the banking sector normally cripple economies and bring many hardships to individuals, corporate entities, communities, and the nation at large. In this study, we sought to examine the level of technical efficiency and productivity growth of rural and community banks (RCBs) and the impact of corporate governance indicators on the RCBs' efficiency performance in Ghana. A sample of 70 out of 140 RCBs was selected based on the ARB Apex Bank's performance ratings and data availability. Data envelopment analysis (DEA) was used to determine the technical efficiency scores of the selected RCBs. In the second stage of the analysis, these computed efficiency scores were regressed on the corporate governance variables to assess the effects of the latter. The findings from the DEA approach show that 11% to 20% of the sampled RCBs in Ghana operate close to the efficiency frontier, whereas the majority - about 65% to 81% - underperformed within the study period of 2007 to 2013. The study further established that the number of board members, frequency of board meetings, and corporate social responsibility have significant influence on RCB efficiency.

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An Evaluation of the Technical Efficiency of the Selected Commercial Banks with the Usage of the CCR-DEA Model under the Conditions of Acquisitions in the Banking Sector

Annales Universitatis Mariae Curie-Skłodowska sectio H Oeconomia ◽

10.17951/h.2020.54.1.77-88 ◽

2020 ◽

Vol 54 (1) ◽

pp. 77

Author(s):

Anna Pyka

Keyword(s):

Data Envelopment Analysis ◽

Technical Efficiency ◽

Linear Form ◽

Commercial Banks ◽

Banking Sector ◽

Data Envelopment ◽

Dea Model ◽

The Impact ◽

Ccr Model

<p>The aim of this article is to evaluate the technical efficiency of the chosen commercial banks, which in the years 2014–2016 were participants in acquisitions in the banking sector, with the usage of the Data Envelopment Analysis (DEA) model. The DEA model was modified through reshaping the linear form using the Charnes, Cooper, and Rhodes (CCR) model, which is aimed at expenditures. Particular attention was paid to the impact of acquisitions in the banking sector on the improvement or deterioration of the technical efficiency of banks that act as acquiring banks.</p>

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Efficiency Analysis of Mexican Stock Exchange Sustainable Firms

Revista Mexicana de Economía y Finanzas ◽

10.21919/remef.v17i1.481 ◽

2021 ◽

Vol 17 (1) ◽

pp. 1-22

Author(s):

Norma Laura Godínez-Reyes ◽

Rodrigo Gómez-Monge ◽

Argelia Calderón-Gutiérrez ◽

Gerardo Gabriel Alfaro-Calderón

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Data Envelopment Analysis ◽

Stock Exchange ◽

Parametric Method ◽

Efficiency Analysis ◽

Data Envelopment ◽

Sustainable Value ◽

Corporate Social ◽

The Impact

This research aims at analyzing the impact that the variables of sustainable value generation (ESG) have on the efficiency of firms listed on the Mexican Stock Exchange Sustainable Index during the period 2014-2017. The non-parametric method of Data Envelopment Analysis (DEA) was used to determine their efficiency. Results indicate that, given the level of profitability, the variable that most affects the generation of sustainable value is corporate governance (G), followed by environmental (E) and social (S) practices. The main limitation of the study is the sample size. The originality of this paper lies in the fact that it determines corporate efficiency using financial performance as an input of a DEA model and sustainable value ratings as outputs. Conclusions show that corporate social responsibility activities may enhance firms’ sustainable efficiency. Therefore, it is proposed that corporate efficiency might be complemented by sustainable value measurements.

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Analysis of the efficiency of insurance companies in Indonesia

Decision Science Letters ◽

10.5267/j.dsl.2022.1.002 ◽

2022 ◽

Vol 11 (2) ◽

pp. 105-112

Author(s):

Zaenal Abdin ◽

R. Mahelan Prabantarikso ◽

Edian Fahmy ◽

Ahmad Farhan

Keyword(s):

Data Envelopment Analysis ◽

Technical Efficiency ◽

Banking Sector ◽

System Stability ◽

Insurance Companies ◽

Positive Trend ◽

Data Envelopment ◽

General Insurance ◽

Parametric Data ◽

Efficiency Performance

Financial system stability is not only supported by the banking sector, but also the role of insurance companies that operate efficiently. The study aims to analyze the efficiency performance of general insurance companies using two stages of data envelopment analysis during the 2017 – 2018 period. The first stage of efficiency measurement using a non-parametric data envelopment analysis (DEA) approach shows the efficiency level of general insurance companies experiencing a positive trend. The performance of general insurance companies in 2018 was more efficient than in 2017 based on the value of technical efficiency (CRS) and the value of pure technical efficiency (VRS). This means that in general there has been an increase in the efficiency of general insurance companies in Indonesia from 2017 to 2018. Testing the efficiency determinants in the second stage using the Tobit regression model found that the cost ratio is the only factor that significantly influences the efficiency level of general insurance companies in Indonesia. Meanwhile, company ownership and investment adequacy ratio have no significant effect on the efficiency level of general insurance companies in Indonesia. The results of the study provide recommendations to the management of general insurance companies that efficiency performance has not reached the maximum, and to improve it, it is necessary to control costs without disturbing routine operations and development activities.

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The Efficiency Performance of Global Islamic Banks

UNIMAS Review of Accounting and Finance ◽

10.33736/uraf.293.2016 ◽

2016 ◽

Vol 1 (1) ◽

Author(s):

Norlina Kadri ◽

Rossazana Abdul Rahim ◽

Dyg Siti Zahrah Abg. Abdillah

Keyword(s):

Data Envelopment Analysis ◽

Technical Efficiency ◽

Banking Sector ◽

Scale Efficiency ◽

Islamic Banking ◽

Data Envelopment ◽

Islamic Banks ◽

Technical Inefficiency ◽

Efficiency Performance ◽

Dea Approach

This paper examines the efficiency performance of the Islamic banks that consist of 14 countries namely Bahrain, Bangladesh, Iran, Jordan, Kuwait, Lebanon, Malaysia, Pakistan, Qatar, Saudi, Tunisia, Turkey, UAE, and Yemen during the period of 2004-2011 with 44 Islamic banks involved. The efficiency estimates of individual banks are evaluated using the Data Envelopment Analysis (DEA) approach. The empirical findings suggest that during the period of study, pure technical efficiency outweighs scale efficiency in the global Islamic banking sector implying that the Islamic banks have been managerially efficient in exploiting their resources to the fullest extent. The empirical findings seem to suggest that the global Islamic banks have exhibited high pure technical efficiency. During the period of study it is found that pure technical efficiency has greater influence in determining the total technical inefficiency of the Global Islamic banking sectors.

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Technical Efficiency Analysis of Terubok Fisheries in Malaysia

Journal of Public Administration and Governance ◽

10.5296/jpag.v8i4.13772 ◽

2019 ◽

Vol 8 (4) ◽

pp. 311

Author(s):

Ashraf-Roszopor, M. ◽

Dayang-Affizzah, A. M. ◽

Abdullah, A. M. ◽

Latif, I. L. ◽

Nor Afiza, A. B.

Keyword(s):

Technical Efficiency ◽

Living Standard ◽

Positive Sign ◽

Estuarine Fish ◽

Scale Efficiency ◽

Data Envelopment ◽

Tobit Analysis ◽

Efficiency Performance ◽

Commercial Value ◽

The Impact

Terubok fish is an estuarine fish that is significant among local fishermen because of high commercial value and it also constitutes to source of income for Terubok fishermen during its catching season. Therefore, due to high commercial value, Terubok fish has been subject to overfished and the population has been declining throughout the years. This study is carried out to analyse the efficiency performance of Terubok fisheries in Malaysia. A sample of actively Terubok fishermen was selected through stratified random sampling and the field survey has conducted at three different places in Sarawak. Data Envelopment Analysis (DEA) and Tobit Analysis were employed to determine the technical efficiency level and factors influencing technical efficiency among Terubok fishermen. The results of the study show that, most fishing units exhibit a low level of technical efficiency. This implies that either fishing inputs were used inefficiently, or insufficient inputs were used in fishing operations. The mean technical efficiency of the sample was estimated to be 0.304 using CRS Model, 0.406 using VRS Model and Scale Efficiency is 0.805. The determinant factors of efficiency among Terubok fishermen was among all, hours in a day, days spent in fishing per month, engine horsepower and fisherman association show positive sign towards efficiency contradictorily other determinant such as age, education, distance and length of vessels possess negative sign towards efficiency. These findings suggest that there’s urgent need to the efficiency level of the fishermen as this will indicate the impact of their living standard. With appropriate training and using more advanced technologies by the fishermen, the level of technical efficiency can be raised, segmented for inshore fisheries.

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Ownership Characteristics,Corporate Social Responsibility, Resource Productivity And Firm Performance: An Empirical Study

Indian Journal of Corporate Governance ◽

10.1177/09746862211007035 ◽

2021 ◽

pp. 097468622110070

Author(s):

John Ben Prince

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Firm Performance ◽

Social Responsibility ◽

Resource Productivity ◽

Governance Indicators ◽

Financial Domain ◽

Media Reports ◽

Corporate Social ◽

The Impact

Corporate governance continues to be at the forefront as evinced by some of the recent incidents at organisations such as Tata Sons, Yes Bank and ICICI bank. Traditionally, ownership characteristics have been considered as close substitutes representing corporate governance, considering that board processes and activity do not yield themselves to much scrutiny beyond a few media reports and analysis. The research article undertakes a study of ownership, corporate social responsibility(CSR) and resource productivity in the Indian context. Using a sample of 900 firms from the non-financial domain, the study uses multivariate regression to identify the effect on market based measure of firm performance. Results indicate that all the ownership variables have a positive and significant influence on market based metrics of organisations. However, the CSR orientation or intent does not indicate any impact on organisation’s market based metric. The resource productivity, on the hand is strongly positive, indicating that markets recognise, intuitively the impact of competencies and capabilities of people. For practitioners, the implications are the quest to identify further levers of strategic and competitive advantage since the governance indicators have merely explained a small part of firm performance.

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Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

Sustainability ◽

10.3390/su13105535 ◽

2021 ◽

Vol 13 (10) ◽

pp. 5535

Author(s):

Marco Benvenuto ◽

Roxana Loredana Avram ◽

Alexandru Avram ◽

Carmine Viola

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Banking Sector ◽

Research Question ◽

Interactive Effect ◽

Banking System ◽

Capital Adequacy ◽

Banking Systems ◽

Governance Index ◽

The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

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The Relationship of Sustainability Communication on Social Media with Banking Consumers’ Loyalty through e-WOM

Sustainability ◽

10.3390/su13073832 ◽

2021 ◽

Vol 13 (7) ◽

pp. 3832

Author(s):

Gao Wei ◽

Wang Lin ◽

Wu Yanxiong ◽

Yan Jingdong ◽

Sadik Yusuf Musse

Keyword(s):

Social Media ◽

Structural Equation ◽

Positive Emotions ◽

Banking Sector ◽

Equation Modeling ◽

Consumer Loyalty ◽

Csr Communication ◽

Prior Literature ◽

Corporate Social ◽

The Impact

Prior literature has largely addressed corporate social responsibility (CSR) from outcomes related to organizational themes. However, its importance for achieving consumer-related outcomes is something that has been largely ignored by contemporary researchers. Likewise, how CSR communication through social media can create positive emotions on the part of consumers has to date been under-explored. Hence, the present study aims to fill these gaps by investigating the impact of CSR communication of an organization through social media on consumer loyalty. The study also proposes electronic word of mouth (e-WOM) as a potential mediator between this relationship. The proposed model of the present study was tested in the banking sector of a developing country. The data were collected from a self-administered questionnaire and analyzed through the structural equation modeling technique (SEM). The results of the present study validated that CSR communication of a bank through social media directly and indirectly, through e-WOM, influences consumer loyalty in a positive manner. The results of the present study will be helpful for policymakers to better understand how well-planned CSR communication of an organization on social media can lead towards better consumer-related outcomes such as consumer loyalty and e-WOM.

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Is internal and external mechanism of governance enriching the performance of the banking sector of Pakistan?

Corporate Governance ◽

10.1108/cg-05-2016-0116 ◽

2017 ◽

Vol 17 (4) ◽

pp. 629-642 ◽

Cited By ~ 5

Author(s):

Sundas Sohail ◽

Farhat Rasul ◽

Ummara Fatima

Keyword(s):

Corporate Governance ◽

Banking Sector ◽

Good Governance ◽

Random Effect ◽

Random Effect Model ◽

General Meeting ◽

Governance Structure ◽

Board Structure ◽

Content Type ◽

The Impact

Purpose The purpose of this study is to explore how governance mechanisms (internal and external) enhance the performance of the return on asset (ROA), return on equity (ROE), earning per share (EPS) and dividend payout ratios (DP) of the banks of Pakistan. The study incorporates not only the internal factors of governance (board size, out-ratio, annual general meeting, managerial ownership, institutional ownership, block holder stock ownership and financial transparency) but also the external factors (legal infrastructure and protection of minority shareholders, and the market for corporate control). Design/methodology/approach The sample size of the study consists of 30 banks (public, private and specialized) listed at the Pakistan Stock Exchange (PSE) for the period 2008-2014. The panel data techniques (fixed or random effect model) have been used for the empirical analysis after verification by Hausman (1978) test. Findings The results revealed that not only do the internal mechanisms of governance enhance the performance of the banking sector of Pakistan but external governance also plays a substantial role in enriching the performance. The findings conclude that for a good governance structure, both internal and external mechanisms are equally important, to accelerate the performance of the banking sector. Research limitations/implications Internal and external mechanisms of corporate governance can also be checked by adding some more variables (ownership i.e. foreign, female and family as internal and auditor as external), but they are not added in this work due to data unavailability. Practical implications The study contributes to the literature and could be useful for the policy makers who need to force banks to mandate codes of governance through which they can create an efficient board structure and augment the performance. The investments from different forms of ownership can be accelerated if they follow the codes properly. Social implications The study facilitates the bankers in incorporating sound codes of corporate governance to enhance the performance of the banks. Originality/value This work is unique as no one has explored the impact of external mechanism of governance on the performance of the banking sector of Pakistan.

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Does Governance Affect Compliance with IFRS 7?

Journal of Risk and Financial Management ◽

10.3390/jrfm14060239 ◽

2021 ◽

Vol 14 (6) ◽

pp. 239

Author(s):

Amal Yamani ◽

Khaled Hussainey ◽

Khaldoon Albitar

Keyword(s):

Corporate Governance ◽

Voluntary Disclosure ◽

Audit Committee ◽

Banking Sector ◽

Mandatory Disclosure ◽

Disclosure Requirements ◽

Corporate Governance Codes ◽

Ifrs 7 ◽

Enforcement Mechanisms ◽

The Impact

Although there has been considerable research on the impact of corporate governance on corporate voluntary disclosure, empirical evidence on how governance affects compliance with mandatory disclosure requirements is limited. We contribute to governance and disclosure literature by examining the impact of corporate governance on compliance with IFRS 7 for the banking sector in Gulf Cooperation Council (GCC). We use a self-constructed disclosure index to measure compliance with IFRS 7. We use regression analyses to examine the impact of board characteristics, audit committee characteristics and ownership structure on compliance with IFRS 7. Using a sample of 335 bank-year observations for GCC listed banks over the period 2011–2017, we report evidence that corporate governance variables affect compliance with IFRS 7. However, the significance of these variables depends on the type of the regression model used. Our findings suggest that governance matters for mandatory disclosure requirements. So to improve the level of compliance, regulators, official authorities, and policymakers should intensify their efforts toward improving corporate governance codes, following up their implementation and enhancing the enforcement mechanisms.

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