scholarly journals Effect of Corporate Governance Practice and Bank Regulatory Capital on Performance: Evidence from Deposit Money Banks in Nigeria

Author(s):  
Adamu Yahaya ◽  
Fauziah Mahat ◽  
Jamilu Abdulkadir

This study examine the effect of corporate governance practice and regulatory capital on the performance of deposit money banks in Nigeria. The study employed a panel data, covering 9 years period across 14 listed deposit money banks in Nigeria. An ordinary least square (OLS) regression was used to analyzed the data for the study. Breausch and Pagan LM and hausman test were conducted to ascertain the best model between pooled OLS, random effect and fixed effect. The study found that board size, non-executive directors and bank regulatory capital have a significant positive effect on the performance of deposit money banks in Nigeria, while role duality was insignificant. Based on the findings, the study recommend compliance to any good corporate governance practice and bank regulatory capital to maintain healthy banks.

2019 ◽  
Vol 1 (1) ◽  
pp. 21-30
Author(s):  
Wisnu Handoyo Murti

This study aims to examine the effect of e-banking and the implication of good corpoarte governance on banks performance. The rapid movement of digital technology in dealing with transaction provides both challange and opportunities. Banks, should understand the digital trend to survive in digital era, while the good corporate governance practice will impact banks performance through planning strategies and decision making. This paper use panel regression to analyze the data, and banks that listed in Indonesia Stock Exchange is used as sample. The result indicates that e-banking, board size, and institutional ownership do not statistically significant in influencing banks performance. While ownership concentration and independent commissioner has positive effect on banks performance.


2015 ◽  
Vol 12 (2) ◽  
pp. 579-589 ◽  
Author(s):  
Athenia Bongani Sibindi ◽  
Augustine Oghenetejiri Aren

The small, micro and medium business enterprises (SMMEs) sector is universally acclaimed for fostering economic growth in many economies. The health of this sector is largely premised on the observance of good corporate governance tenets. The purpose of this paper is to determine whether good corporate governance practice has been firmly embedded in the small-to-medium enterprise (SMMEs) sector in South Africa. In this study we interrogate the influence of good internal control systems, with a special focus on cash flow management practices on the survival or growth of the SMMEs. This paper utilised qualitative research methods and employed the survey technique amongst the SMMES operating in the retail sector of Pretoria in South Africa. We find evidence that good corporate governance practices enhance cash flow management processes. This is extremely important to the survival of a business, particularly small businesses, and poor corporate governance practices lead to weak cash flow management systems, which can thus lead to small business failure. We also proffer policy advice as to the remedial actions needed to safeguard this sector


2011 ◽  
Vol 55 (2) ◽  
pp. 280-299 ◽  
Author(s):  
Nat Ofo

AbstractIn furtherance of its role to entrench good corporate governance practice in Nigeria, the Securities and Exchange Commission of Nigeria published a draft revised Code of Corporate Governance. It is intended that this revised code will replace the country's current corporate governance code which came into force in 2003. This article sets out a thorough examination of the draft code with a view to appraising whether the final version of the code will be well-suited to meet its desired goals. Consequently, some of its provisions have been critically reviewed while others have been acclaimed. Furthermore, the article draws attention to the increased responsibility of the Securities and Exchange Commission in establishing good corporate governance practice and makes extensive suggestions in this regard.


Author(s):  
Zuhura Mohamed Abdallah ◽  
Fatma Ali Mohamed

Corporate Social Responsibility is gaining more awareness in Zanzibar as the firms are recognizing the important role it plays on firm’s performance. This research empirically examines the effect of corporate social responsibility and financial performance of hotels in Zanzibar. CSR is measured by cost paid for corporate social responsibility while financial performance is measured by using profitability measures such as ROA and ROE. By utilizing panel data of 4 hotels for 7 years period from 2011-2017, the study uses ordinary least square method-random effect regression, model. The study found CSR has a significant positive effect on ROA and ROE of hotels in Zanzibar. The study also found that control variables (i.e leverage, R & D, size) have a significant effect on ROA and ROE. The study recommends more investment in CSR as a way of boosting hotels profitability.


2019 ◽  
Vol 8 (1) ◽  
pp. 47-58 ◽  
Author(s):  
Anthony Wood ◽  
Keisha Small

The objective of this paper is to provide an assessment of corporate governance in selected financial institutions in Barbados. The instrument used for measuring corporate governance practice is derived from the Central Bank of Barbados (CBB) Corporate Governance Guidelines (2013) and the OECD Principles of Corporate Governance (OECD, 2004). A corporate governance index is developed to best fit the domestic financial system. The results indicate that the five financial institutions are highly compliant with the corporate governance guidelines. The corporate governance index ranges from 75 to 92 on a scale of 0 to 100 in ascending order of good corporate governance. Commercial banks obtained the highest corporate governance rankings. This result is not surprising since the banks operating in Barbados are affiliates of foreign-owned and domiciled financial institutions. They are therefore monitored by multiple local, regional and international regulatory agencies. This paper is the first such research effort for the Barbadian economy. The findings should be beneficial to many persons, including top management (CEO, Chairman, Board of Directors), shareholders and other stakeholders, regulators and future researchers.


JURNAL PUNDI ◽  
2020 ◽  
Vol 3 (3) ◽  
pp. 215
Author(s):  
Elsa Meirina ◽  
Henryanto Abaharis

This study aims to examine the mechanism of Good Corporate Governance And Leverage On Banking Financial Performance. the population is a banking company registered on the IDX in 2016, which is 43 companies. The sample collection technique has been done using a purposive sampling method and based on predetermined criteria, 8 companies have been selected as samples. The company's financial report data has been obtained from the official IDX website. The analytical method used is panel data regression analysis with the help of E-Views 8. The initial test is to test the Chow-Test to decide whether the Pooled Least Square method or Fixed Effect is used; and the Hausman-Test test to decide whether the Fixed Effect or Random Effect method can be used. The results showed that Managerial Ownership variables have a positive and not significant effect on financial performance that is proxy by ROA, the board of directors has a positive and significant effect on financial performance (ROA), leverage has a positive and not significant effect on financial performance (ROA).


2020 ◽  
Vol 13 (2) ◽  
pp. 615-637 ◽  
Author(s):  
Md. Harun Ur Rashid ◽  
Shah Asadullah Mohd. Zobair ◽  
Md. Asad Iqbal Chowdhury ◽  
Azharul Islam

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.


2018 ◽  
Vol 1 (1) ◽  
pp. 35-44
Author(s):  
Daniel Yudistya Wardhana

Good corporate governance (GCG) practices have been broadly acknowledged in both industry and government these days. In general, good execution and practice of good corporate governance indicate thehealth of corporations. The awareness of good corporate governance practice developed among familybusiness regardless the size of the business. Thus, this research aims to explore the general perception offamily business towards the good corporate governance practices and the importance of good corporategovernance in their business. The focus of this study is family business in Yogyakarta Province, Indonesia.This research uses descriptive and quantitative model. Every data that was obtained from the respondents willbe described in detail and explained with quantitative model to analysis the implementation of good corporategovernance in SMEs. The results from 60 family businesses show that mostly the SMEs understand thatcompany financial and non-financial report should be reported on regular basis (mean= 2.83) they alsodiscloses the internal salary system to the employee (mean= 2.68) it might be due to the directcommunication by the owner or management to the employees. SMEs agree that detailed job description isnecessary (mean= 2.97) as well as standard operational procedure document (mean= 2.67). Also, most ofSMEs agree that a regular payment period is important (mean= 3.58) and reporting the tax on time(mean=3.27). SMEs agree that the owners or family members should be independent in recruiting employees(mean=2.55) and deciding company strategies (mean=2.43) and SMEs perception of fairness showed thatfamily member have limited opportunity to work at the company (mean=3.30).


2020 ◽  
Vol 9 (2) ◽  
pp. 75-82
Author(s):  
Vjollca Istrefi

The most recent and severe financial crisis followed by the failure of the most important financial players in the world economy has raised doubts about the way the government system works. This has been crucial to understanding the significance of good corporate governance practices, able to sustain the current blockage in the most vital financial negotiations. Therefore, interest in corporate governance has grown and attracted considerable attention in both developed and less-developed countries (Mallin, 2004; Solomon & Solomon, 2004; Sternberg, 2004). Hence, the study is based on a theoretical approach, and confronts the traditional and Islamic corporate governance, analyzing the essential differences that have highlighted the necessity of finding an alternative model to the traditional one. Comparing the two models of corporate governance, in their authentic form, it easily gives rise to discrepancies. The most important divergence between the two models derived from the fact that in the Islamic model the corporate governance practice is based on the religious principles and God and Islam are the main participants in it. This is in contrast to the conventional philosophy that focuses on the material aspects and the main objective is to create and increase shareholders’ value throughout the time.


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