The Effect of Board of Directors Characteristics on Risk and Bank Performance: Evidence from Turkey

Doğan, Berna; Ekşi̇, İbrahim Halil

doi:10.18559/ebr.2020.3.5

Cited by 17 publications

(15 citation statements)

References 25 publications

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“…The authors found a negative relationship between board size and firm performance. The negative relationship between board size and firm performance is also supported by Doğan and Yildiz (2013).…”

Section: Resultsmentioning

confidence: 71%

Corporate social responsibility, firm performance and the moderating effect of earnings management in Chinese firms

Sial

Chen

Khan

et al. 2018

APJBA

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Purpose The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and firm performance and the moderating role of earnings management on the relationship between CSR and firm performance. Design/methodology/approach The empirical study used the updated data set (3,481 unbalanced observations for period 2009–2015) from Chinese listed companies on Shenzhen and Shanghai stock exchanges. The generalized method of moments (GMM) statistical approach has been used for the analysis. The authors utilized STATA to test GMM on a sample of Chinese listed firms data over the period 2009–2015. The unbalanced sample obtained 3,481 observations from China stock market and accounting research database and CSR ratings provided by Rankins (RKS). Findings The results demonstrated that CSR has a positive and significant relationship with firm’s performance; also, earnings management has a negatively moderate relationship between CSR and firm performance. These results imply that a high value of earnings management, which results in high level of symbolic CSR, converts to low firm performance of the Chinese firms. CSR actions (only as symbolic measures) promoted by managers as a means to cover their profit management incite an adverse effect on the company’s performance. This study has highlighted the impact of two different corporate social responsibilities: substantive and symbolic (genuine CSR vs greenwashing) on firm performance. Research limitations/implications The results of this investigation will be of distinct interest to company owners who wish to ascertain the effectiveness of the sustainability decisions of directors and managers, and also to investors and public authorities to estimate the positive relationship between CSR and company’s reputation and image, and thus, the positive influence on firm performance. Originality/value Previous studies have generally focused on the relationship between CSR and firm performance. This study provides the impact of earnings management (measurement of both aspects of accrual-based earnings management and real earnings management) on this relationship. Furthermore, this study examines the state of CSR in the Chinese market and provides empirical evidence of this relationship in emerging markets.

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Section: Resultsmentioning

confidence: 71%

Corporate social responsibility, firm performance and the moderating effect of earnings management in Chinese firms

Sial

Chen

Khan

et al. 2018

APJBA

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“…They stated that the board size has a positive impact on performance. Doğan and Yıldız (2013) investigated the impact of board of directors on bank performance and found a positive relationship between the board size and Tobin's Q. Alam and Akhter (2017) analyzed the effects of corporate governance mechanisms on the performance of commercial banks.…”

Section: Literature Reviewmentioning

confidence: 99%

The nonlinear effects of ownership concentration and board structure on bank performance

Vural

Yücel

2023

Panoeconomicus

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This study looks into the relationships between the banks? ownership structures, the characteristics of their boards, and their performance. A bank's performance varies depending on a series of different factors. In recent years, the evaluation of performance in the context of corporate governance practices has gained importance. This study considers the issue from the perspective of developed nations, looking at the examples of the United States and the United Kingdom. The findings demonstrate that adopting certain corporate governance practices improves a bank's performance levels over previous periods. Having a duality in the board structure and increasing its proportion of nonexecutive board members improve a bank's performance. In contrast, a statistically significant negative relationship was found between bank performance and board size, board members appointed for their specific skills, and the number of board meetings. It was also discovered that there is no linear relationship between the proportion of strictly independent board members on a board of directors and performance. A nonlinear relationship was found between bank ownership concentration and their performance. The discovery of a nonlinear relationship between performance and increasing concentration in a bank's ownership structure and the proportion of strictly independent board members on its board is a sign that there is an optimal level for these variables.

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“…In papers by (Alp et al, 1997;Bikker & Hu, 2002;Boyd & Runkle, 1993;Doğan & Yildiz, 2013) statistically significant correlation between banks' size and profitability has been assessed. This has been also the case with studies performed by (Athanasoglou, Brissimis, & Delis, 2008;Camilleri, 2005;Gul et al, 2011; Korytowski / International Journal of Finance & Banking Studies, Vol 7 No 1, 2018ISSN: 2147 Peer-reviewed Academic Journal published by SSBFNET with respect to copyright holders.…”

Section: Hipothesis Development Based On Literature Findingsmentioning

confidence: 99%

Banks’ profitability determinants in post-crisis European Union

Korytowski

2018

IJFBS

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The purpose of this article is to examine the impact of selected internal and external factors on a bank’s profitability. The research investigates the impact of operational size, liquidity, risk appetite, management efficiency, product diversification, concentration, GDP growth and inflation change on the profitability of sample of 4179 European commercial banks for the period between 2011 and 2015. The input data were obtained from the Orbis Focus and the World Bank databases. The determinants were used to construct two models with ROAA and ROAE as a proxies and regression analysis using between groups panel approach was conducted. It has been found that growing economy impacts banks’ profitability positively. It has been robustly confirmed that management efficiency, product diversification, market concentration and inflation result in decreased profitability. The operational size has been found to be negatively linked to changes in net results but was confirmed only with ROAA model. Similarly, statistically significant results with regard to liquidity were found only for ROAA model and the correlation was positive. The strong negative impact of market concentration on profitability is an interesting finding allowing for further exploration of reasons for this unexpected vector of correlation.

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The Effect of Board of Directors Characteristics on Risk and Bank Performance: Evidence from Turkey

Cited by 17 publications

References 25 publications

Corporate social responsibility, firm performance and the moderating effect of earnings management in Chinese firms

Corporate social responsibility, firm performance and the moderating effect of earnings management in Chinese firms

The nonlinear effects of ownership concentration and board structure on bank performance

Banks’ profitability determinants in post-crisis European Union

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