Corporate governance and banks’ productivity: evidence from the banking industry in Bangladesh

Rashid, Md. Harun Ur; Zobair, Shah Asadullah Mohd.; Chowdhury, Md. Asad Iqbal; Islam, Azharul

doi:10.1007/s40685-020-00109-x

Cited by 42 publications

(56 citation statements)

References 79 publications

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“…However, to choose an efficient estimator between fixed and random effects, we have conducted another test named the Hausman test. The result discloses that the p-value for the chi-square statistic is (Prob > chi2 ¼ 0.000) less than 5%, which means to reject the Hο of the test (Rashid et al, 2020). Thus there is no evidence that the fixed-effect model is inconsistent.…”

Section: Fixed Effect Random Effect and Hausman Testmentioning

confidence: 91%

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Public policies and tax evasion: evidence from SAARC countries

Islam

Rashid

Hossain

et al. 2020

Heliyon

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In compliance with the socioeconomic theory, the study has strived to investigate the impact of economic and non-economic public policies on tax evasion using panel data of 7 SAARC countries covering the period from 1998 to 2015. The study has applied the ordinary least square with fixed effect and random effect models to analyze the data assembled. The result of the study implies that the higher the degree of economic freedoms, the lower the tax evasion. More specifically, the government policies about property rights, monetary freedom, fiscal freedom and investment freedom have a negative influence on taxpayers' choices of tax evasion while financial freedom result shows a positive effect on tax evasion. Additionally, there is a negative impact of public sector governance and religiosity on tax evasion, which implies the higher the public sector governance and the higher the religious faith amid the people, the lower the degree of tax evasion. The findings of the study are supposed to offer the governments, tax authorities, and research scholars the valuable insights into public policies for reducing the tax evasion to a significant extent.

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Section: Fixed Effect Random Effect and Hausman Testmentioning

confidence: 91%

“…It means the random effect estimators would be proper to explain the model. In case of less than 5% chi-square value, we reject the null hypothesis, which stands for using fixed-effect estimators (Rashid et al, 2020).…”

Section: Hausman Testmentioning

confidence: 92%

Public policies and tax evasion: evidence from SAARC countries

Islam

Rashid

Hossain

et al. 2020

Heliyon

Self Cite

View full text Add to dashboard Cite

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“…ε it indicates the error term. A natural logarithm is used for some variables to ameliorate the goodness of the econometric model (Rashid et al , 2020).…”

Section: Methodsmentioning

confidence: 99%

“…The Board of Directors is an internal organ linked to the direction and management of the bank and it is composed of directors named by the shareholders (Abdeljawad et al , 2020; Jimenez et al , 2020; Rashid et al , 2020; Rehman and Hashim, 2020). This board has the same legal responsibilities as a conventional bank’s board.…”

Section: Introductionmentioning

confidence: 99%

Financial soundness of Islamic banks: does the structure of the board of directors matter?

Khalil

Slimene

2021

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Purpose The purpose of this paper is to examine the Board of Directors’ characteristics and their impact on the financial soundness of Islamic banks. Design/methodology/approach Regression analysis is applied to test the impact of the Board of Directors’ characteristics on the financial soundness of Islamic banks, using a panel data set of 67 Islamic banks covering 20 countries from 2005 to 2018. The Z-score indicator is used to evaluate the Islamic banks’ soundness. To check the robustness of the results, this paper uses other dependent variables (CAMEL) than the Z-score. Findings The main results show that the presence of an independent non-executive director negatively impacts the financial soundness of Islamic banks, while the chief executive officer duality practice has a positive effect on it. Other characteristics of the Board of Directors do not significantly impact the financial soundness of Islamic banks (foreign director, institutional director, chairman with a Shari’ah degree, interlocked chairman and the Board of Directors’ size). Practical implications This study aims to fill the gaps in the literature that discuss the Board of Directors’ role in corporate governance and its impact on the financial soundness of Islamic banks. In other words, it shows the role played by the Board of Directors and improves the knowledge of the corporate governance-financial soundness relationship. Plus, managers, investors and regulators may gain evocative insights, particularly those looking to improve their Islamic banks’ soundness by restructuring their boards’ composition. Originality/value This study sheds new light on the literature on Islamic banking by clarifying the relationship between the Board of Directors and the financial soundness of Islamic banks. Contrary to previous research, this paper uses an additional hypothesis stating that a chairman with a Shari’ah degree (Fiqh Muamalt) has a positive impact on the financial soundness of Islamic banks.

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“…In the present study, accounting experts must have professional degrees in their respective fields. Accounting experts of a company always focus on the profitability of the company instead of sustainability (Rashid et al, 2020). For instance, accounting experts always strive to maximize the firm's profit and prevent corporate managers from investing in CSR drives .…”

Section: Accounting Experts On Board and Csrdmentioning

confidence: 99%

Impact of Corporate Governance Mechanisms on Corporate Social Responsibility Disclosure of Publicly-Listed Banks in Bangladesh

Jahid¹,

Rashid²,

Hossain³

et al. 2020

JAFEB

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The study examines the impact of corporate governance mechanisms, such as board characteristics on corporate social responsibility disclosure (CSRD). The data on CSRD items and board characteristics have been collected by content analysis of the annual reports of 30 publicly-listed banks in Bangladesh covering six years, from 2013 to 2018. More specifically, the directors' report, the chairman's statement, notes to the financial statement and CSR disclosure reports included in annual reports were used to collect the CSRD data. The empirical analysis applies the ordinary least square and the generalized method of moments. The results of the study have revealed that board size, board independence, female board member, and foreign directors have a significant positive impact on CSRD. By contrast, political directors and audit committee size have a negative impact on CSRD. Interestingly, accounting experts on boards ensure more CSRD as they curb the influence of politicians on the board. Thus, it is better to increase accounting experts and decrease politicians on the board. These findings provide valuable insights into the process of forming a suitable CSR policy by connecting the efforts of the board, government, and regulatory bodies to enhance the performance of banks to CSR as well as to CSRD.

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Corporate governance and banks’ productivity: evidence from the banking industry in Bangladesh

Cited by 42 publications

References 79 publications

Public policies and tax evasion: evidence from SAARC countries

Public policies and tax evasion: evidence from SAARC countries

Financial soundness of Islamic banks: does the structure of the board of directors matter?

Impact of Corporate Governance Mechanisms on Corporate Social Responsibility Disclosure of Publicly-Listed Banks in Bangladesh

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