IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE OF BANKS IN INDIA
DOI:
https://doi.org/10.48165/iitmjbs.2024.SI.10Keywords:
Performance Metrics, Ownership Structures, Emerging Market Banking SystemsAbstract
The study explores the intricate relationship between corporate governance mechanisms and their influence on the performance metrics of banks, considering different ownership structures in the Indian banking sector. In light of the economic reforms and heightened regulatory scrutiny post the 1990s, this study investigates whether the changes in governance practices have substantially affected the performance outcomes of banks in terms of profitability, risk management, and operational efficiency.
References
1. Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309.
2. Adams, R. B., & Mehran, H. (2012). Bank board structure and performance: Evidence for large bank holding companies. Journal of financial Intermediation, 21(2), 243-267.
3. Alabi, A. M., Oguntoyinbo, F. N., Abioye, K. M., John-Ladega, A. A., Obiki-Osafiele, A. N., & Daraojimba, C. (2023). Risk management in Africa’s financial landscape: a review. International Journal of Advanced Economics, 5(8), 239-257.
4. Arner, D. W., & Park, C. Y. (2010). Global financial regulatory reforms: Implications for developing Asia.
5. Barth, J. R., Caprio Jr, G., & Levine, R. (2004). Bank regulation and supervision: What works best? Journal of Financial Intermediation, 13(2), 205-248.
6. Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257-273.
7. Boachie, C. (2023). Corporate governance and financial performance of banks in Ghana: The moderating role of ownership structure.
social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114, 207-223.
Huizinga, H. (2001). How does foreign entry affect domestic banking markets? Journal of Banking & Finance, 25(5), 891-911.
9. Erkens, D. H., Hung, M., & Matos, P. (2012). Corporate governance in the 2007– 2008 financial crisis: Evidence from financial institutions worldwide. Journal of Corporate Finance, 18(2), 389-411.
10. Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law and Economics, 26(2), 301-325.
11. Hermalin, B. E., & Weisbach, M. S. (1991). The effects of board composition and direct incentives on firm performance. Financial Management, 101-112.
12. India, R. B. O. (2004). Handbook of Statistics on Indian Economy. Reserve Bank of India. 13. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323-329.
14. Joecks, J., Pull, K., & Vetter, K. (2013). Gender diversity in the boardroom and firm performance: What exactly constitutes a “critical mass”? Journal of Business Ethics, 118, 61-72.
15. Joecks, J., Pull, K., & Vetter, K. (2013). Gender diversity in the boardroom and firm performance: What exactly constitutes a “critical mass?”. Journal of business ethics, 118, 61-72.
16. Kamardin, H., Latif, R. A., Mohd, K. N. T., & Adam, N. C. (2014). Multiple Directorships and the Monitoring Role of the Board of Directors: Evidence from Malaysia. Jurnal Pengurusan, 42.
17. Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate
18. Kumar, A., Gupta, J., & Das, N. (2022). Revisiting the influence of corporate sustainability practices on corporate financial performance: An evidence from the global energy sector. Business Strategy and the Environment, 31(7), 3231-3253.
19. Kumbhakar, S. C., & Sarkar, S. (2003). Deregulation, ownership, and productivity growth in the banking industry: Evidence from India. Journal of Money, Credit and Banking, 403-424.
20. Kundu, S. C., Kumar, S., & Gahlawat, N. (2019). Empowering leadership and job performance: Mediating role of psychological empowerment. Management Research Review, 42(5), 605-624.
21. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). Government ownership of banks. The Journal of Finance, 57(1), 265-301.
22. Mehran, H., & Mollineaux, L. (2012). Corporate governance of financial institutions. Annu. Rev. Financ. Econ., 4(1), 215-232.
23. Omarova, S. T. (2016). Bank governance and systemic stability: The golden share approach. Ala. L. Rev., 68, 1029.
24. Raje, P. (2000). Where Did India Miss a Turn in Banking Reform? Is there a comeback?. U. of Pennsylvania, Center for Advanced Study of India, Working Paper, (14).
25. Rehman, A., Rubab, S., & Khaliq, A. A. (2023). Determinants of non-performing assets and the performance of Islamic banks in Pakistan. Qlantic Journal of Social Sciences, 4(2), 26-35.
26. Sarbanes, P. (2002, July). Sarbanes-oxley act of 2002. In The Public Company Accounting Reform and Investor Protection Act. Washington DC: US Congress (Vol. 55).