Examining the relationship between corporate governance and bank performance in Bangladesh

Jesmin ISLAM, Milind SATHYE, Hui Hu

    Research output: Contribution to journalArticle

    3 Citations (Scopus)

    Abstract

    Previous research has studied the impact of corporate governance on bank performance, but only a few aspects of the impact were reported. The present study develops a unique corporate governance index to provide a comprehensive measure of corporate governance and examines the relationship between this comprehensive measure and bank performance. We apply the Wilcoxon signed rank test to examine whether the introduction of the Code of Corporate Governance in Bangladesh has significantly promoted the improvement of corporate governance practices in Bangladeshi banks. Our results provide support for the hypothesis that corporate governance practices of Bangladeshi banks have been significantly improved since the introduction of the code. Further, the present study adopts regression analysis and reveals that the comprehensive measure of corporate governance is not significantly related to Bangladeshi banks' performance.
    Original languageEnglish
    Pages (from-to)43-51
    Number of pages9
    JournalSouth African Journal of Business Management
    Volume46
    Issue number4
    Publication statusPublished - 2015

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    Corporate governance
    Bank performance
    Bangladesh
    Rank test
    Regression analysis
    Governance indexes

    Cite this

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    abstract = "Previous research has studied the impact of corporate governance on bank performance, but only a few aspects of the impact were reported. The present study develops a unique corporate governance index to provide a comprehensive measure of corporate governance and examines the relationship between this comprehensive measure and bank performance. We apply the Wilcoxon signed rank test to examine whether the introduction of the Code of Corporate Governance in Bangladesh has significantly promoted the improvement of corporate governance practices in Bangladeshi banks. Our results provide support for the hypothesis that corporate governance practices of Bangladeshi banks have been significantly improved since the introduction of the code. Further, the present study adopts regression analysis and reveals that the comprehensive measure of corporate governance is not significantly related to Bangladeshi banks' performance.",
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    Examining the relationship between corporate governance and bank performance in Bangladesh. / ISLAM, Jesmin; SATHYE, Milind; Hu, Hui.

    In: South African Journal of Business Management, Vol. 46, No. 4, 2015, p. 43-51.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Examining the relationship between corporate governance and bank performance in Bangladesh

    AU - ISLAM, Jesmin

    AU - SATHYE, Milind

    AU - Hu, Hui

    PY - 2015

    Y1 - 2015

    N2 - Previous research has studied the impact of corporate governance on bank performance, but only a few aspects of the impact were reported. The present study develops a unique corporate governance index to provide a comprehensive measure of corporate governance and examines the relationship between this comprehensive measure and bank performance. We apply the Wilcoxon signed rank test to examine whether the introduction of the Code of Corporate Governance in Bangladesh has significantly promoted the improvement of corporate governance practices in Bangladeshi banks. Our results provide support for the hypothesis that corporate governance practices of Bangladeshi banks have been significantly improved since the introduction of the code. Further, the present study adopts regression analysis and reveals that the comprehensive measure of corporate governance is not significantly related to Bangladeshi banks' performance.

    AB - Previous research has studied the impact of corporate governance on bank performance, but only a few aspects of the impact were reported. The present study develops a unique corporate governance index to provide a comprehensive measure of corporate governance and examines the relationship between this comprehensive measure and bank performance. We apply the Wilcoxon signed rank test to examine whether the introduction of the Code of Corporate Governance in Bangladesh has significantly promoted the improvement of corporate governance practices in Bangladeshi banks. Our results provide support for the hypothesis that corporate governance practices of Bangladeshi banks have been significantly improved since the introduction of the code. Further, the present study adopts regression analysis and reveals that the comprehensive measure of corporate governance is not significantly related to Bangladeshi banks' performance.

    M3 - Article

    VL - 46

    SP - 43

    EP - 51

    JO - South African Journal of Business Management

    JF - South African Journal of Business Management

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