The Impact of Corporate Governance on Bank Performance:  Empirical Evidence from Bangladesh

The Impact of Corporate Governance on Bank Performance: Empirical Evidence from Bangladesh

Md. Ataur Rahman

Contact

Jahurul Islam

Contact

Begum Rokeya University

The Impact of Corporate Governance on Bank Performance: Empirical Evidence from Bangladesh

Article Fingerprint

ReserarchID

C: FINANCE3ZBU0

The Impact of Corporate Governance on Bank Performance: Empirical Evidence from Bangladesh Banner

AI TAKEAWAY

Connecting with the Eternal Ground

Abstract

This paper effort to find out the impact of corporate governance practices on bank performance in Bangladesh. In this paper, we examine 85 observations from 17 publicly traded commercial banks listed in Dhaka Stock Exchange (DSE) over the period of 2013-2017. We use the econometric model and pooled ordinary least square regression analysis to find out the correlations and regression among independent variables (size of the board, board composition, and chief executive officer status) and dependent variables (return on asset, return on equity and earnings per share). This research reveals that the board of director has a positive significant impact on ROA, ROE, and EPS. Independent board of director has a positive significant impact on ROE and EPS. Chief executive officer has a positive significant impact on ROA. In addition, most of the cases large bank size positively affecting the performance of Bangladeshi bank. Finally, there is a positive significant relationship between corporate governance and bank performance in Bangladesh.

References

24 Cites in Article

Reference Format

Renee Adams,Hamid Mehran (2005). Corporate Performance, Board Structure, and Their Determinants in the Banking Industry.
R Adams,H Mehran (2012). Bank board structure and performance: Evidence for large bank holding companies.
J Akhavein,A Berger,D Humphrey (1997). The effects of megamergers on efficiency and prices: Evidence from a bank profit function.
M Al-Manaseer,R Al-Hindawi,M Al-Dahiyat,I Sartawi (2012). The impact of corporate governance on the performance of Jordanian banks.
B Baysinger,H Butler (1985). Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition.
B Baysinger,R Hoskisson (1990). The composition of boards of directors and strategic control: Effects on corporate strategy.
Mark Beasley,Joseph Carcello,Dana Hermanson,Paul Lapides (1999). Fraudulent Financial Reporting: Consideration of Industry Traits and Corporate Governance Mechanisms.
Jacob Bikker,H Hu (2012). Cyclical Patterns in Profits, Provisioning and Lending of Banks.
Philip Bourke (1989). Concentration and other determinants of bank profitability in Europe, North America and Australia.
James Brickley,Jeffrey Coles,Gregg Jarrell (1997). Leadership structure: Separating the CEO and Chairman of the Board.
G Caprio,L Laeven,R Levine (2007). Governance and bank valuation.
B Chang,S Dutta (2012). Dividends and corporate governance: Canadian evidence.
Shijun Cheng (2008). Board size and the variability of corporate performance.
M Cornett,A Marcus,H Tehranian (2008). Corporate governance and pay-forperformance: The impact of earnings management.
Dan Dalton,Catherine Daily,Alan Ellstrand,Jonathan Johnson (1998). Meta-analytic reviews of board composition, leadership structure, and financial performance.
Pablo Andres,Eleuterio Vallelado (2008). Corporate governance in banking: The role of the board of directors.
Pablo De Andres,Valentin Azofra,Felix Lopez (2005). Corporate Boards in OECD Countries: size, composition, functioning and effectiveness.
Alexander Dehaene,Veerle De Vuyst,Hubert Ooghe (2001). Corporate Performance and Board Structure in Belgian Companies.
Theodore Eisenberg,Stefan Sundgren,Martin Wells (1998). Larger board size and decreasing firm value in small firms.
Eugene Fama,Michael Jensen (1983). Separation of Ownership and Control.
Ana Álvarez,Silvia Gómez,Carlos Méndez (1997). The Effect of Board Size and Composition on Corporate Performance.
J Goddard,P Molyneux,J Wilson (2004). The profitability of European banks: a cross-sectional and dynamic panel analysis.
Mohammad Hoque,Rabiul Islam,Hasnan Ahmed (2013). Corporate Governance and Bank Performance: The Case of Bangladesh.
Munawar Iqbal,Philip Molyneux (2005). Thirty Years of Islamic Banking.

Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Md. Ataur Rahman. 2019. \u201cThe Impact of Corporate Governance on Bank Performance: Empirical Evidence from Bangladesh\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 18 (GJMBR Volume 18 Issue C8): .

More Citation Formats

Select Citation Style:

Download Citation

Download Article

GJMBR Volume 18 Issue C8
Pg. 49- 54

Explore Journals Explore Volume Read This Issue

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Not Found

Classification

GJMBR-C Classification: JEL Code: F65

Submission ReceivedDecember 14, 2017
Peer Review Double Blind
Handling Editor
Accepted January 3, 2018
Published January 15, 2018

Version of record

v1.2

Issue date

January 18, 2019

Language

Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D

Article Matrices

Total Score: 102

Country: Bangladesh

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Md. Ataur Rahman, Jahurul Islam (PhD/Dr. count: 0)

View Count (all-time): 149

Total Views (Real + Logic): 2838

Total Downloads (simulated): 1526

Publish Date: 2019 01, Fri

Monthly Totals (Real + Logic):

Month 1: 50 views
Month 2: 38 views
Month 3: 52 views
Month 4: 51 views
Month 5: 40 views
Month 6: 51 views
Month 7: 30 views
Month 8: 24 views
Month 9: 19 views
Month 10: 41 views
Month 11: 38 views
Month 12: 40 views
Month 13: 32 views
Month 14: 40 views
Month 15: 46 views
Month 16: 16 views
Month 17: 23 views
Month 18: 21 views
Month 19: 21 views
Month 20: 33 views
Month 21: 41 views
Month 22: 46 views
Month 23: 31 views
Month 24: 20 views
Month 25: 37 views
Month 26: 35 views
Month 27: 17 views
Month 28: 21 views
Month 29: 17 views
Month 30: 30 views
Month 31: 27 views
Month 32: 29 views
Month 33: 31 views
Month 34: 18 views
Month 35: 17 views
Month 36: 20 views
Month 37: 19 views
Month 38: 40 views
Month 39: 28 views
Month 40: 28 views
Month 41: 14 views
Month 42: 38 views
Month 43: 28 views
Month 44: 43 views
Month 45: 33 views
Month 46: 38 views
Month 47: 18 views
Month 48: 35 views
Month 49: 21 views
Month 50: 35 views
Month 51: 30 views
Month 52: 48 views
Month 53: 39 views
Month 54: 21 views
Month 55: 41 views
Month 56: 42 views
Month 57: 23 views
Month 58: 26 views
Month 59: 18 views
Month 60: 28 views
Month 61: 20 views
Month 62: 38 views
Month 63: 15 views
Month 64: 33 views
Month 65: 31 views
Month 66: 42 views
Month 67: 16 views
Month 68: 43 views
Month 69: 44 views
Month 70: 32 views
Month 71: 43 views
Month 72: 18 views
Month 73: 34 views
Month 74: 28 views
Month 75: 28 views
Month 76: 19 views
Month 77: 33 views
Month 78: 37 views
Month 79: 31 views
Month 80: 37 views
Month 81: 16 views
Month 82: 36 views
Month 83: 23 views
Month 84: 33 views
Month 85: 33 views
Month 86: 61 views
Month 87: 33 views

Total Views: 2838

Total Downloads: 1526

2026 Trends

Published Article

Our website is actively being updated, and changes may occur frequently. Please clear your browser cache if needed. For feedback or error reporting, please email [email protected]