The Effect of Corporate Governance Disclosure on Banking Performance: Empirical Evidence from Iran, Saudi Arabia and Malaysia

Khanifah, Khanifah; Hardiningsih, Pancawati; DARMARYANTIKO, Asri; IRYANTIK, Iryantika; Udin, Udin

doi:10.13106/jafeb.2020.vol7.no3.41

Cited by 51 publications

(91 citation statements)

References 43 publications

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“…The higher the cost ratio is, the less efficient the bank management is. • Earnings are displayed by the most common indicators, namely, return on assets (ROA), return on equity (ROE), and net interest margin (NIM) (Dao & Nguyen, 2020;Khanifah, Hardiningsih, Darmaryantiko, Iryantik, &Udin, 2020; Qayyum& Noreen 2019). • Liquidity is calculated using two ratios, namely, liquid assets/total assets and loans/deposits (Dang, 2019).…”

Section: Model Variables and Estimation Techniquementioning

confidence: 99%

Bank-Specific Determinants of Loan Growth in Vietnam: Evidence from the CAMELS Approach

Nguyen¹,

Dang²

2020

JAFEB

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The paper empirically examines the bank-specific determinants of loan growth in the Vietnamese banking system for the period from 2007 to 2019. We approach the CAMELS framework and employ the dynamic panel regression to determine the effects of each CAMELS factor on bank lending. To ensure the robustness of results, we also use alternative definitions of the variables and different specifications with and without full sets of CAMELS components. With these settings, we display multiple important results. (i) We find that a large capital buffer tends to boost bank lending expansion faster. (ii) High asset quality might positively contribute to high loan growth; in other words, banks subject to high credit risk are discouraged from making loans. (iii) Less efficiently managed banks are more likely to adopt an aggressive lending strategy, highlighting the moral hazard incentives of Vietnamese banks. (iv) More profitable banks with excellent competitive advantages could expand their lending activities to a larger extent. (v) Liquidity is positively related to the loan growth of banks. (vi) Perceived interest rate risk tends to suppress loan growth since interest-rate-sensitive banks might be concerned about the adverse effects of unpredictable adverse changes in interest rates in the future.

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Section: Model Variables and Estimation Techniquementioning

confidence: 99%

Bank-Specific Determinants of Loan Growth in Vietnam: Evidence from the CAMELS Approach

Nguyen¹,

Dang²

2020

JAFEB

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“…Information transparency cannot rely on the sole role of regulatory agencies, but also depends on determinants, especially the initiative of business leadership (Dao, 2018). Khanifah et al (2020) also provide the evidence that Islamic bank with higher level of corporate governance disclosure reported high operating performance measure by ROA.…”

Section: Transparency Commitment By Senior Managersmentioning

confidence: 81%

Determinants Influencing Information Transparency in Vietnamese Commercial Banks

Nguyễn¹,

Nguyen²,

Hoang³

et al. 2020

JAFEB

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Information transparency ensures that market players all have the opportunity to access the same information to come up with their assessment of the banks' financial situation, performance and risks to reach effective investment decisions. This research is conducted to investigate the levels of impact of determinants on information transparency by examining the case studies of Vietnamese commercial banks. This study combines both qualitative and quantitative research methods, based on interviews of 32 specialists in banking, accounting and auditing fields, which were conducted to explore determinants influencing information transparency and to develop measurement scales. Then, a survey of 160 managers of commercial banks, audit firms, and accounting managers of firms who frequently had transactions with banks was carried out to investigate the statistical significance of these determinants. The results show that, out of seven determinants that have significant impacts on the banks' information transparency, commitment from banks' senior management regarding transparency in information disclosure has the highest impact, followed by state governance, auditing, information infrastructure, credit rating agencies, personnel and bank performance. Accordingly, we provide some recommendations for improving information transparency in the Vietnamese banking industry context as a case study and in emerging countries context in general.

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“…Information transparency regarding board governance in banks is widely considered a guiding principle in CG best practice, as stakeholders demand to be informed about the Board’s proper management and processes to lower their levels of uncertainty regarding investment decisions. Therefore, among other aspects, it is essential for key bank stakeholders such as shareholders to monitor the board of directors’ performance [ 26 ].…”

Section: Transparency In the Banking Sectormentioning

confidence: 99%

What determines the progress of online information access to banking corporate governance practices? The case of Paraguay

2022

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This paper contributes to the lack of longitudinal studies concerning online information access to corporate governance (CG) practices in the banking sector of Latin American countries. In particular, this study aims to analyze the factors that influence information transparency, both mandatory and voluntary, related to CG practices of banks that operate in Paraguay via their websites from 2016 to 2019. Findings indicate the need to improve the level of information available on websites, with disclosure of voluntary information on CG practices being more prevalent than the disclosure of mandatory information. Likewise, banks that operate in Paraguay have made scant “progress” regarding online access to their governance information over the years analyzed. Moreover, the factors “Bank size” and “listed status” positively influence the information transparency regarding CG practices of Paraguayan banks. In contrast, “leverage,” “liquidity,” “size of the audit firm,” and “credit risk rating” are factors that have a negative relation with the extent of CG disclosure.

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The Effect of Corporate Governance Disclosure on Banking Performance: Empirical Evidence from Iran, Saudi Arabia and Malaysia

Cited by 51 publications

References 43 publications

Bank-Specific Determinants of Loan Growth in Vietnam: Evidence from the CAMELS Approach

Bank-Specific Determinants of Loan Growth in Vietnam: Evidence from the CAMELS Approach

Determinants Influencing Information Transparency in Vietnamese Commercial Banks

What determines the progress of online information access to banking corporate governance practices? The case of Paraguay

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