Board Structure and Bank Performance: The Mediating Role of Intellectual Capital

Nikolić, Јеlena; Nielsen, Jelena Erić; Peković, Jelena

doi:10.2478/ngoe-2022-0009

Cited by 3 publications

(10 citation statements)

References 64 publications

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“…Previous studies, including those conducted by Babić et al [9] and Simić [84], have generally found that the size of the board of directors does not have a statistically significant impact on the profitability of banks in Serbia. However, Nikolić et al [44] found that board size has no significant effect on bank profitability as measured by ROA, but does have a negative impact on profitability as measured by ROE. Based on the above, the first research hypothesis was defined: H 1 .…”

Section: Review Of Literature and Definition Of Hypothesesmentioning

confidence: 99%

“…According to this view, it is considered that women, unlike men, have a higher level of education and other skills and thus positively influence the efficiency of the board and the performance of the company [62]. Greater diversity enables new views of the environment, richer sources of information, and increased creativity and innovation [7,44,62,63,80]. This is supported by the fact that female members of management boards attend meetings more often than their colleagues and are more actively involved in them [26].…”

Section: Review Of Literature and Definition Of Hypothesesmentioning

confidence: 99%

“…The effectiveness and efficiency of the board of directors is influenced by its size and diversity of members (such as independence, gender, level of education, duality of the executive director, professionalism, etc.) [5,10,44,45].…”

Section: Introductionmentioning

confidence: 99%

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Board Gender Diversity and Banks Profitability for Business Viability: Evidence from Serbia

Milojević¹,

Milašinović

Mitrović

et al. 2023

Sustainability

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As an important topic in the field of corporate governance, the influence of the board of directors’ characteristics on the profitability of corporations is examined here. This paper examines the influence of the board of directors’ and chief executive officers’ (CEO) characteristics on the profitability of banks in Serbia. In this study, the characteristics of boards of directors were examined in terms of size and the participation of women, and the characteristics of CEOs were examined similarly in terms of women’s participation. The research was conducted on a sample of 23 commercial banks from Serbia in the period from 2017 to 2021. Profitability was measured by the rate of return on operating assets (ROA) and the rate of return on equity (ROE). The results of the panel regression analysis indicate that the size of the board of directors had a positive impact on bank profitability during the COVID-19 pandemic period, while this impact was not statistically significant before the pandemic. The participation of women on the board of directors did not have a statistically significant impact on bank profitability before or during the COVID-19 pandemic. It has been found that the participation of women as CEOs had a negative impact on bank profitability before and during the COVID-19 pandemic.

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Section: Review Of Literature and Definition Of Hypothesesmentioning

confidence: 99%

Section: Review Of Literature and Definition Of Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Board Gender Diversity and Banks Profitability for Business Viability: Evidence from Serbia

Milojević¹,

Milašinović

Mitrović

et al. 2023

Sustainability

View full text Add to dashboard Cite

show abstract

“…Corporate governance regulates relationships between related parties such as management, shareholders, board of commissioners and other stakeholders (El-Chaarani, Abraham, & Skaf, 2022). The regulation of the relationship between the parties involved will be related to their rights and obligations and will give rise to an agency theory where management of the banking sector will be separate from ownership (Nikolić, Nielsen, & Peković, 2022). Separating management from ownership will create a conflict of interest between banking owners and banking administrators such as management or directors (Al-Janadi, 2021).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Corporate Governance Mechanisms and Banking Performance in Indonesia

Tri Maharani,

Sutrisno

2023

AFMJ

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The company's main goal is to grow and develop well. To be able to grow, company management must be able to improve company performance which is usually measured by profitability. There are several factors that influence profitability, including corporate governance mechanisms. This research aims to examine the influence of corporate governance mechanisms on banking performance. In this research, corporate governance mechanisms are measured by institutional ownership, managerial ownership, independent board of commissioners, size of the board of directors and size of the audit committee, while banking performance is measured by Return On Assets (ROA). The population in this research is the banking industry listed on the Indonesia Stock Exchange, totaling 46 banks and all of them were taken as samples. The observation period is 4 years (2019 – 2022) with quarterly data. To test the hypothesis, use multiple regression analysis with a significance requirement of 0.05. The data was processed using the SPSS version 25 program. The results of this study show that institutional ownership and the board of directors have no effect on financial performance, while managerial ownership has a significant effect but with a negative coefficient. Meanwhile, independent commissioners and audit committee size have a positive effect on performance.

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“…Sample selection procedure CEE it is CEE coefficient of bank i at time t; VA it represents total VA produced by bank i at time t; CE it is CE (book value of net assets) of bank i at time t, CE it is CE measured as the book value of total assets minus total liability[7,82,152,207,218,219].The VAIC is calculated in the fifth stage to illustrate how much new value has been created per monetary unit invested in each resource.where VAIC it , the VA intellectual coefficient for the bank i at time t; CEE it , VA by CE coefficient for bank i at time t; HCE it , the HCE for bank i at time t; SCE it , SC VA for bank i at time t.On the sixth stage, relational capital efficiency is calculated to show how relational capital (a bank's ability to create relationships with customers, suppliers, and other external stakeholders) contributes to value creation[137,191,208,213].where RCE it is RC coefficient of bank i at time t; VA it represents total VA produced by bank i at time t; RC it is RC of bank i at time t, RC it is RC measured as the marketing and advertisement expenses[29,69,136,207,218,227].VAIC it = HCE it + SCE it + CEE it VAIC it ,the VA intellectual coefficient for the bank i at time t; CEE it , VA by CE coefficient for bank i at time t; HCE it , the HCE for bank i at time t; SCE it , VA by SC for bank i at time t. Being the Pulic model, the value-added intellectual capital coefficient (VAIC) is divided into three major components: SCE, HCE, and CEE…”

mentioning

confidence: 99%

Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

Assfaw,

Sharma

2024

Futur Bus J

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Purpose The current study aims to explore the impact of corporate governance (CG) mechanisms, as measured by board size, board meeting frequency, board gender diversity, number of board subcommittees, board remuneration, size of audit committee, and audit committee meeting frequency, on bank intellectual capital (as calculated by the modified value-added intellectual coefficient (M-VAIC) and its components (human capital efficiency (HCE), structural capital efficiency (SCE), and relational capital efficiency (SCE)). Design/methodology/approach Panel data is extracted from the financial and other internal reports of 14 commercial banks and the National Bank of Ethiopia for the period 2011–2022. A two-step system generalized method of moments (2SYS-GMM) was used to account for the unobserved endogeneity and heteroscedasticity problems. Findings The empirical findings suggest that board size and board meeting frequency have a negative and significant impact on all IC performance measures. Besides, audit committee size has a negative and significant effect on HCE, SCE, and M-VAIC of the banking industry in Ethiopia. Moreover, board remuneration has a significant positive relationship with IC efficiency (HCE, SCE, and M-VAIC). Also, audit committee meeting frequency has a positive and significant effect on the HCE of banks. However, board gender diversity and the number of board subcommittees have not made statistically significant contributions to IC performance. Research limitation/implication The study is limited in its use of seven dimensions of CG and future studies can use other alternative accounts for CG variables. Next, this study applies only to commercial banks; hence, future studies can include other financial as well as non-financial organizations such as insurance companies, microfinance institutions, manufacturing, and other sectors. Practical implications This study contributes to helping the regulators and practitioners of the banking industry improve the existing standards and guidelines for CG practices to strengthen their IC performance. The findings may also give input for policymakers to integrate the intellectual capital in the decision-making process for policy formulation and implementation for the establishment of a robust banking sector. Originality/value Considering the modified value-added IC coefficient (M-VAIC) and 2SYS-GMM models, this research is the first study to analyze the relationships between CG and banks’ IC in Ethiopia.

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Board Structure and Bank Performance: The Mediating Role of Intellectual Capital

Cited by 3 publications

References 64 publications

Board Gender Diversity and Banks Profitability for Business Viability: Evidence from Serbia

Board Gender Diversity and Banks Profitability for Business Viability: Evidence from Serbia

The Effect of Corporate Governance Mechanisms and Banking Performance in Indonesia

Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

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