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 CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE IN THE BANKING SECTOR OF NIGERIA AND THE UNITED KINGDOM

2020 ◽  
Vol 5 (1) ◽  
pp. 8-20
Author(s):  
Ayodeji Ajibade ◽  
◽  
Kofoworola Jaji ◽  
Jerry Kwarbai ◽  
Keyword(s):  
Corporate Governance ◽  
United Kingdom ◽  
Financial Performance ◽  
Audit Committee ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Multiple Regression Model ◽  
Governance System ◽  
The United Kingdom

Banks are the support system of any economy, hence the significant need for economies to have a healthy system of banking with operative corporate governance system. The study examined the effect of corporate governance and financial performance in the banking sector of Nigeria and United Kingdom. It analysed secondary data collated from the annual report of ten listed banks each from the Nigeria and UK stock exchange markets. Using multiple regression model, the study examined the combined effect of board size, board composition, audit committee and firm size on the performance of the listed banks. The result shows that corporate governance variables have a significant effect on the financial performance of the Nigeria and U.K banking sector. Keywords: Inflation, monetary policy, economic growth, purchasing power, Nigeria.

scholarly journals Sustainable Governance to Improve the Performance of SOEs Bank Listed on Indonesian Stock Exchange that are Classified as LQ45

2020 ◽  
Vol 17 (2) ◽  
pp. 220-229
Author(s):  
Mochamad Muslih ◽  
Dahlia Banjarnahor
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Banking Sector ◽  
Stock Exchange ◽  
Company Performance ◽  
Technology Governance ◽  
Digital Era ◽  
Information Technology Governance

Corporate governance is useful for improving company performance. Company performance can be in the form of financial performance or non-financial performance. In this digital era, the role of governance is very important. One of the elements of governance is information technology governance. The purpose of this research is to study the effect of corporate governance on the performance of the State-Owned Banks listed on the Indonesia Stock Exchange which is classified as LQ 45. The research method is quantitative method. The 3 (three) governance variables used in this study are commissioners compensation, board size, and audit committee size. The population is state-owned banking sector companies listed on the Indonesia Stock Exchange classified as LQ 45.

scholarly journals Does corporate governance structure matter for firm financial performance? A system GMM panel analysis for Vietnam

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Pham Duc Anh ◽  
Hoang Thi Phuong Anh ◽  
◽  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Governance Structure ◽  
Firm Financial Performance ◽  
Method Of Moments Estimator ◽  
Board Gender Diversity ◽  
The Impact

This paper investigates the impact of governance characteristics on financial performance of companies listed on the Ho Chi Minh Stock Exchange. By employing the system generalized method of moments estimator and a panel dataset covering 152 firms over the period from 2011 to 2016, our results indicate that corporate governance characteristics namely the size of board and block-holder ownership, affect the financial performance of Vietnamese firms. Surprisingly, no statistically significant evidence is found concerning the impact of other characteristics such as board gender diversity, CEO duality and non-executive director representation on firm performance.

THE EFFECT OF CORPORATE GOVERNANCE AND CORPORATE CULTURE ON FIRM MARKET VALUE TO IMPROVE FINANCIAL PERFORMANCE

2020 ◽  
Vol 1 (6) ◽  
pp. 930-940
Author(s):  
Fathiyah Fathiyah ◽  
Mufidah Mufidah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Culture ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Market Value ◽  
Company Performance ◽  
Financial Company

The purpose of this research is to analyze the effect of corporate governance and corporate culture  on firm market value to improve financial performance. Corporate governance  is measured by audit  committee,boards of directors, board meeting and nomination . Corporate culture is measured by Corporate culture promotion While financial  company performance is measured by return on assets.  This research was conducted on companies listed on the Indonesia Stock exchange on indexed LQ 45 for period of 2016-2018. The sample was selected for 25 companies. The method of analysis uses associate descriptive analysis with  path analysis. Based on the results of the study found that corporate governance and culture promotion indirectly effect on financial performance with firm market value as intervening variable.

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 TATA KELOLA DAN KINERJA KEUANGAN BADAN USAHA MILIK NEGARA (BUMN) GO PUBLIC PERIODE 2014-2018

2021 ◽  
Vol 10 (1) ◽  
pp. 82-101
Author(s):  
Andika Dwi Pradito ◽  
Axel Giovanni ◽  
Devi Wahyu Utami
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Stock Exchange ◽  
Analytical Tool ◽  
Board Independence ◽  
Government Ownership ◽  
Board Size

Abstrak: Tata Kelola Dan Kinerja Keuangan Badan Usaha Milik Negara (BUMN) Go Public Periode 2014-2018. Penelitian ini bertujuan untuk memberikan bukti empiris mengenai pengaruh tata kelola perusahaan terhadap kinerja keuangan Badan Usaha Milik Negara (BUMN) yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 2014-2018. Sampel penelitian yang memenuhi kriteria berjumlah 12 Badan Usaha Milik Negara (BUMN). Alat analisis yang digunakan adalah regresi linear. Hasil penelitian memberikan bukti mengenai urgensi komite audit dalam tata kelola perusahaan. Penelitian ini juga menunjukan bahwa board size, board independence serta kepemilikan pemerintah tidak memiliki peran dalam menjelaskan variabilitas kinerja keuangan Badan Usaha Milik Negara (BUMN).Kata kunci: Badan Usaha Milik Negara (BUMN), kinerja keuangan, tata kelola perusahaanAbstract: Governance and Financial Performance of State-Owned Enterprises (SOEs) Go Public Period 2014-2018. This study aims to provide empirical evidence regarding the effect of corporate governance on the financial performance of State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. Research samples that met the criteria totaled 12 State-Owned Enterprises (BUMN). The analytical tool used is linear regression. The results of the study provide evidence of the urgency of the audit committee in corporate governance. This study also shows that board size, board independence, and government ownership do not have a role in explaining the variability in the financial performance of SOEs.Keywords: corporate governance, financial performance, state-owned enterprises (SOEs)

scholarly journals FINANCIAL PERFORMANCE: THE ROLE OF GOOD CORPORATE GOVERNANCE (CASE STUDY IN THE MANUFACTURING COMPANIES OF BASIC AND CHEMICAL INDUSTRIAL SECTORS REGISTERED ON THE INDONESIA STOCK EXCHANGE 2016-2018)

2020 ◽  
Vol 18 (2) ◽  
pp. 36
Author(s):  
Ari Susanti ◽  
Sri Lestari
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Quantitative Research ◽  
Audit Committee ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Industrial Sectors ◽  
Good Corporate Governance

This study aims to examine the effect of implementing good corporate governance as measured by an independent board of commissioners, board of directors, and audit committee on financial performance measured using Return of Equity (ROE). This research uses quantitative research. The population in this study are manufacturing companies in the basic and chemical industry sectors that consistently publish financial reports on the Indonesia Stock Exchange from 2016 to 2018. Based on the purposive sampling method, a sample of 11 companies is obtained each year to obtain 33 observational data. The data in this study use warpPLS 6.0 software. The results of this study indicate that the independent board of commissioners, the board of directors affect the financial performance, while the audit committee has no effect on financial performance.

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

scholarly journals Financial Performance and Income Diversity: Does Ownership Matter? Evidence from Vietnamese Commercial Banks

2020 ◽  
Vol 12 (8) ◽  
pp. 77
Author(s):  
Tin H. Ho
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
Real Estate Market ◽  
State Ownership ◽  
Annual Data ◽  
Operating Income ◽  
Panel Regressions ◽  
Credit Shocks

In the context of the sharp development of the Vietnamese stock market in recent years, financial performance of listed firms is drawing the attention of investors, particularly in banking industry. Moreover, the harmony of income diversity or reducing the relying on traditional activities of commercial banks is thriving in the world and strongly influence on Vietnam’s banking, especially when the outbreak of COVID-19 worldwide may result in the freeze of real estate market, which leads to devaluate collaterals as well as the risk of non-performing loans, so-called “credit shocks”. This paper, therefore, examines the impacts of income diversity on financial performance of Vietnamese commercial banks in the period from 2007 to 2019. To conduct this study, annual data are collected of 26 commercial banks, listed in Ho Chi Minh Stock Exchange (HOSE), Ha Noi Stock Exchange (HNX), UPCoM and OTC. The research develops an exploratory model reflecting financial performance of the banks in relation to their income diversity and analyzes data using panel regressions. The results show that there is no relationship between financial performance and income diversity due to its low proportion in total operating income. However, the state ownership makes stronger this relationship despite the small impacts. The findings are expected to add the gap in the existing literature, lacking of investigating the impacts of market power on bank income diversity, and the moderating role of state ownership in this relation in Vietnamese banking sector, which is ignored or opposite in most recent studies. Thereby, the paper also gives some useful implications for investors, bank managers as well as policy makers to catch up the market fluctuations.

scholarly journals Pengaruh Ukuran Perusahaan Dan Corporate Governance Terhadap Manajemen Laba Di Industri Perbankan Indonesia

2021 ◽  
Vol 9 (1) ◽  
pp. 111-120
Author(s):  
Karina Karina ◽  
Sutarti Sutarti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Banking Sector ◽  
Audit Quality ◽  
Stock Exchange ◽  
Governance Mechanisms ◽  
Audit Firm ◽  
Corporate Governance Mechanisms ◽  
Size Firm

The purpose of this research is to provide empirical evidence of the affect of ownership concetration, firms size, and corporate governance mechanisms on earnings management. Ownership concetration was measure by the biggest stock of individual or organization, firms size was measure by natural logaritma of net assets, and corporate governance mechanisms were measure by three variabels (composition of board of commisioner, audit quality were measure by industry specialize audit firm, and composition of audit committee). Earnings management was measure by discretionary accruals use Modified Jones Method. The population of this research is 41 companies in the banking sector which were listed in Indonesian Stock Exchange (IDX). The research data were collected from banking companies financial statement for the period of 2016 to 2018. Based on purposive sampling method. The reseacrh hypotesis were tested using multiple regression analysis. The results of this research show that firm size, firm of commissioner and proportion of commissioner have significant relationships with earnings management. Next, variables composition of board of commissioner, ownership concetration and specialize audit firm have no significant relationship with earnings management. Keywords: ownership concetration, firms size, corporate governance, earnings management

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