Board governance and bank performance: A meta- analysis

Bhatia, Madhur; Gulati, Rachita

doi:10.1016/j.ribaf.2021.101425

Cited by 29 publications

(19 citation statements)

References 104 publications

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“…The main explanatory variable in the study is board characteristics. We measured the board governance structure using four board governance characteristics, namely board size, board independence, board meetings, and board gender diversity, which are consistent with the existing literature (e.g., [ 4 , 19 , 22 , 107 , 108 ]). The current study assesses the board governance mechanism of sample firms using four proxies: board size, board independence, frequency of board meetings per year, and board gender diversity.…”

Section: Methodsmentioning

confidence: 98%

Board characteristics, institutional ownership, and investment efficiency: Evidence from an emerging market

Ali,

Farooq,

Xiaohong

et al. 2024

PLoS ONE

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This study investigates the impact of board governance mechanism on investment efficiency (IE) in PSX-listed firms. The study also examines the role of institutional ownership (IO) in board-IE relationships. In addition, we extend our analysis to re-examine this relationship by splitting the sample into two groups, i.e., the introductory phase of corporate governance (CG) i.e., 2004 to 2013, and revised codes of CG (2014 to 2018) to examine the impact of these separately on IE. The sample data comprises 155 non-financial PSX-listed firms from 2004 to 2018. IE is measured using firms’ growth opportunities. The random effect model is used to test the study’s hypotheses. A robustness test is also performed to validate the study’s findings. The paired-sample t-test results show a significant improvement in IE after revising the CG codes in 2012. According to the regression results, board size has a significant direct, whereas board diversity has a significant inverse effect on IE. Regarding moderating effect, IO was found to moderate the relationship between board independence and IE significantly. Furthermore, it was discovered that following the issuance of revised CG codes-2012, the level of board independence and diversity increased in PSX-listed firms; however, only diversity positively impacted IE, and board independence had no impact on IE from 2014 to 2018. Despite the issuance of revised CG codes-2012, the level of CG among PSX-listed firms is low, which is a source of concern for regulators such as the Securities and Exchange Commission of Pakistan.

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Section: Methodsmentioning

confidence: 98%

Board characteristics, institutional ownership, and investment efficiency: Evidence from an emerging market

Ali,

Farooq,

Xiaohong

et al. 2024

PLoS ONE

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“…Bukar and Ahmed (2020), García-Meca et al (2015), Onyekwere et al (2019) and Uyar et al (2022), for example, illustrate that gender diversity enhances governance and report a favourable association between WOB and bank performance. Baselga-Pascual and Vähämaa (2021), Bhatia and Gulati (2021), Dong et al (2017), Jabari and Muhamad (2020), Mateus and Belhaj (2016), and Stefanovic and Barjaktarovic (2020) concluded that banks perform better when there are more women on bank boards. Some other researchers (Alharbi et al, 2022;Boadi et al, 2022;George & Muiruri, 2022) also show the benefits of having WOB outweigh the costs.…”

Section: Women On Board and Bank Performancementioning

confidence: 99%

“…While there are many studies on how WOB affects the performance of non-financial businesses, there are not many on how WOB affects the performance of banks (Stefanovic & Barjaktarovic, 2020), and the results have mainly remained inconclusive (Marquez-Cardenas et al, 2022;Tampakoudis et al, 2022). Bhatia and Gulati (2021) argue that governance in banks differs from that in other industries and requires separate considerations and that conclusions drawn for different sectors cannot be generalised to banks. Furthermore, governance in banks differs from that in other industries and requires particular concerns.…”

Section: Introductionmentioning

confidence: 99%

Women on Boards and Financial Performance of Malaysian Banks

Rahman,

Mohamad

2023

European Proceedings of Finance and Economics

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Through the perspective of critical mass theory, this study provides empirical evidence on the effect of the existence of women on boards (WOB) on the financial performance of Malaysian banks. Our sample included 90 bank-year observations, which span the years 2013 through 2021. Using panel data regression analysis, this study documents the insignificant impact of the existence of WOB on bank financial performance, implying that the mere presence of WOB does not improve the financial performance of Malaysian banks. Nevertheless, the proportion of WOB and a threshold of 30% WOB have a favourable effect on financial performance as measured by ROE and ROIC. This study recommends that banks concentrate on recruiting the appropriate proportion of female directors and exploiting the possible advantages of a gender-balanced board, as greater diversity may help firms achieve excellent stability, which generally improves financial performance. This study has significant ramifications for regulators, policymakers, and practitioners.

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“…Electronic multipurpose credit is an innovation of bank products in reaching a wider potential customer. However, the performance of bank services is subjective to every customer (Bhatia & Gulati, 2021). Customer satisfaction is determined by customer expectations with the reality of the service received.…”

Section: A Study On Bank Jatim -Malangmentioning

confidence: 99%

Innovation of Electronic-Based Multipurpose Credit Services to Improve Customer Satisfaction Through Loan Fee : A Study on Bank Jatim - Malang

Orbaningsih

Gitaria

Budi

2022

ebasr

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The competition of financial services business is getting higher and encourages banks to optimize their efforts to reach as many prospective customers as possible. One of the efforts made is to update innovative banking credit services through the development of an electronic-based multipurpose credit service system. This research aims to find out whether the quality of service, product quality, and loan fee, affect customer satisfaction. This research uses a quantitative approach, data collection using questionnaires distributed to 150 customers of Jatim bank. Data analysis uses path analysis. This research found that The Quality of Service affects Customer Satisfaction but the Quality of Multipurpose Credit electronic application products does not significantly affect customer satisfaction; Quality of Service and Product Quality of Multipurpose Credit electronic application affects Customer Satisfaction through Loan Fees. This research has the implication that innovation policies on multipurpose credit services and borrowing costs are major factors that can improve customer satisfaction.

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Board governance and bank performance: A meta- analysis

Cited by 29 publications

References 104 publications

Board characteristics, institutional ownership, and investment efficiency: Evidence from an emerging market

Board characteristics, institutional ownership, and investment efficiency: Evidence from an emerging market

Women on Boards and Financial Performance of Malaysian Banks

Innovation of Electronic-Based Multipurpose Credit Services to Improve Customer Satisfaction Through Loan Fee : A Study on Bank Jatim - Malang

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