Better boards towards higher profitability

This paper will examine the impact of corporate governance on the profitability of banks using the agency theory. The profitability of banks is measured by return on assets (ROA) and return on equity (ROE). A total of twelve listed bank holding companies are examined over a ten-year period. Based on...

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Main Author:	Htay, Sheila Nu Nu
Format:	Article
Language:	English
Published:	World Business Institute 2012
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/23247/ http://irep.iium.edu.my/23247/ http://irep.iium.edu.my/23247/1/Better_Boards_Towards_Higher_Profitability.pdf

id	iium-23247
recordtype	eprints
spelling	iium-232472012-04-05T00:01:30Z http://irep.iium.edu.my/23247/ Better boards towards higher profitability Htay, Sheila Nu Nu HG1501 Banking This paper will examine the impact of corporate governance on the profitability of banks using the agency theory. The profitability of banks is measured by return on assets (ROA) and return on equity (ROE). A total of twelve listed bank holding companies are examined over a ten-year period. Based on the panel data analysis, none of the conventional measures of corporate governance is significant as hypothesized. Board’s independence and institutional ownership have negative impact on ROE significantly. Apart from that, as the findings of the effect of corporate governance on bank profitability are inconclusive, other factors such as culture, local prevailing laws and business environment, might need to be considered. World Business Institute 2012-03 Article PeerReviewed application/pdf en http://irep.iium.edu.my/23247/1/Better_Boards_Towards_Higher_Profitability.pdf Htay, Sheila Nu Nu (2012) Better boards towards higher profitability. World Review of Business Research, 2 (2). pp. 149-163. ISSN 1838-3955 http://www.wbiaus.org/11.%20Sheila.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Htay, Sheila Nu Nu Better boards towards higher profitability
description	This paper will examine the impact of corporate governance on the profitability of banks using the agency theory. The profitability of banks is measured by return on assets (ROA) and return on equity (ROE). A total of twelve listed bank holding companies are examined over a ten-year period. Based on the panel data analysis, none of the conventional measures of corporate governance is significant as hypothesized. Board’s independence and institutional ownership have negative impact on ROE significantly. Apart from that, as the findings of the effect of corporate governance on bank profitability are inconclusive, other factors such as culture, local prevailing laws and business environment, might need to be considered.
format	Article
author	Htay, Sheila Nu Nu
author_facet	Htay, Sheila Nu Nu
author_sort	Htay, Sheila Nu Nu
title	Better boards towards higher profitability
title_short	Better boards towards higher profitability
title_full	Better boards towards higher profitability
title_fullStr	Better boards towards higher profitability
title_full_unstemmed	Better boards towards higher profitability
title_sort	better boards towards higher profitability
publisher	World Business Institute
publishDate	2012
url	http://irep.iium.edu.my/23247/ http://irep.iium.edu.my/23247/ http://irep.iium.edu.my/23247/1/Better_Boards_Towards_Higher_Profitability.pdf
first_indexed	2023-09-18T20:35:16Z
last_indexed	2023-09-18T20:35:16Z
_version_	1777409004093308928

Better boards towards higher profitability

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