The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual Framework
The global financial crisis of the last decade has been described as the most serious crisis that affects the world's economy since the Great Depression of 1940, which lead to the bank's recapitalization exercises in many countries. The purpose of this study is to propose a conceptual fra...
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| Format: | Article |
| Language: | English |
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EconJournals
2019-12-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/8976 |
| _version_ | 1797918384967385088 |
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| author | Umar Muhammed Dikko Mohd Norfian Alifiah |
| author_facet | Umar Muhammed Dikko Mohd Norfian Alifiah |
| author_sort | Umar Muhammed Dikko |
| collection | DOAJ |
| description |
The global financial crisis of the last decade has been described as the most serious crisis that affects the world's economy since the Great Depression of 1940, which lead to the bank's recapitalization exercises in many countries. The purpose of this study is to propose a conceptual framework that will investigate the effect of bank recapitalization on the performance of the banking sector and to measure the moderating effect of corporate governance. However, the nature and existence of this relationship are found to be mixed and inconclusive (i.e., positive, negative, or no relationship at all). These have prompted scholars, experts, and authorities to re-examine the relationship between recapitalization and the performance of the banking sector. This study addresses the research deficit and proposes a conceptual and theoretical framework for measuring the effectiveness of bank recapitalization, corporate governance on the bank's performance, which could be used by banks and other regulatory bodies. Furthermore, a recommendation for future research in this area also suggested.
Keywords: Recapitalization, Corporate Governance, Banks Performance, Debt Restructuring, Bailout, Blanket Guarantee
JEL Classifications: G01, G03, G21, G34, L25
DOI: https://doi.org/10.32479/ijefi.8976
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| first_indexed | 2024-04-10T13:28:25Z |
| format | Article |
| id | doaj.art-c979443978b44a58ade7a084bf8c0fa8 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:28:25Z |
| publishDate | 2019-12-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-c979443978b44a58ade7a084bf8c0fa82023-02-15T16:11:46ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382019-12-011014300The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual FrameworkUmar Muhammed Dikko0Mohd Norfian AlifiahAzman Hashim International Business School (AHIBS) Universiti Teknologi Malaysia, Johor, Malaysia The global financial crisis of the last decade has been described as the most serious crisis that affects the world's economy since the Great Depression of 1940, which lead to the bank's recapitalization exercises in many countries. The purpose of this study is to propose a conceptual framework that will investigate the effect of bank recapitalization on the performance of the banking sector and to measure the moderating effect of corporate governance. However, the nature and existence of this relationship are found to be mixed and inconclusive (i.e., positive, negative, or no relationship at all). These have prompted scholars, experts, and authorities to re-examine the relationship between recapitalization and the performance of the banking sector. This study addresses the research deficit and proposes a conceptual and theoretical framework for measuring the effectiveness of bank recapitalization, corporate governance on the bank's performance, which could be used by banks and other regulatory bodies. Furthermore, a recommendation for future research in this area also suggested. Keywords: Recapitalization, Corporate Governance, Banks Performance, Debt Restructuring, Bailout, Blanket Guarantee JEL Classifications: G01, G03, G21, G34, L25 DOI: https://doi.org/10.32479/ijefi.8976 https://www.econjournals.com/index.php/ijefi/article/view/8976 |
| spellingShingle | Umar Muhammed Dikko Mohd Norfian Alifiah The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual Framework International Journal of Economics and Financial Issues |
| title | The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual Framework |
| title_full | The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual Framework |
| title_fullStr | The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual Framework |
| title_full_unstemmed | The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual Framework |
| title_short | The Effect of Bank Recapitalization and Corporate Governance on Performance of Banking Sector: A Proposed Conceptual Framework |
| title_sort | effect of bank recapitalization and corporate governance on performance of banking sector a proposed conceptual framework |
| url | https://www.econjournals.com/index.php/ijefi/article/view/8976 |
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