A panel data analysis on the relationship between corporate governance and bank efficiency
Emerging corporate governance issues in the Asian countries due to the 1997-1998 economic crises makes it much more important to discuss those issues within the context of this region. In developing countries such as Malaysia, a good governance of the banks is crucial for the survival of its economy...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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World Business Institute, Australia
2011
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| Online Access: | http://irep.iium.edu.my/2230/1/A_panel_data_analysis_on_the_relationship_between_corporate_governance_and_bank_efficiency.pdf |
| _version_ | 1796874866830344192 |
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| author | Adnan, Muhammad Akhyar Htay, Sheila Nu Nu Ab. Rashid, Hafiz Majdi Mydin Meera, Ahamed Kameel |
| author_facet | Adnan, Muhammad Akhyar Htay, Sheila Nu Nu Ab. Rashid, Hafiz Majdi Mydin Meera, Ahamed Kameel |
| author_sort | Adnan, Muhammad Akhyar |
| collection | IIUM |
| description | Emerging corporate governance issues in the Asian countries due to the 1997-1998 economic crises makes it much more important to discuss those issues within the context of this region. In developing countries such as Malaysia, a good governance of the banks is crucial for the survival of its economy. Many studies have tried to link the effect of corporate governance on banks’ efficiency (Jain and Thomson, 2008; Chunxia, Shujie and Zongyi, 2009; Lensink, Meesters and Naaborg, 2008). This study investigates the impact of corporate governance on efficiency of Malaysian listed banks by using a panel data analysis. Corporate governance variables are represented by board leadership structure, board composition, board size, director ownership, institutional ownership and block ownership. Bank efficiency is used to measure the performance since traditional accounting and market performance measures are doubtful in suitability of capturing the actual performance of the banking industry and efficiency seems to be given more attention recently (e.g. Ihsan and Kabir, 2002). The findings show that smaller board size and higher percentage of block ownership lead to better efficiency of Malaysian banks. The current prevailing situations in Malaysia are discussed to highlight the reasons behind these research findings. |
| first_indexed | 2024-03-05T22:30:36Z |
| format | Article |
| id | oai:generic.eprints.org:2230 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T22:30:36Z |
| publishDate | 2011 |
| publisher | World Business Institute, Australia |
| record_format | dspace |
| spelling | oai:generic.eprints.org:22302017-06-22T04:56:08Z http://irep.iium.edu.my/2230/ A panel data analysis on the relationship between corporate governance and bank efficiency Adnan, Muhammad Akhyar Htay, Sheila Nu Nu Ab. Rashid, Hafiz Majdi Mydin Meera, Ahamed Kameel HG1501 Banking Emerging corporate governance issues in the Asian countries due to the 1997-1998 economic crises makes it much more important to discuss those issues within the context of this region. In developing countries such as Malaysia, a good governance of the banks is crucial for the survival of its economy. Many studies have tried to link the effect of corporate governance on banks’ efficiency (Jain and Thomson, 2008; Chunxia, Shujie and Zongyi, 2009; Lensink, Meesters and Naaborg, 2008). This study investigates the impact of corporate governance on efficiency of Malaysian listed banks by using a panel data analysis. Corporate governance variables are represented by board leadership structure, board composition, board size, director ownership, institutional ownership and block ownership. Bank efficiency is used to measure the performance since traditional accounting and market performance measures are doubtful in suitability of capturing the actual performance of the banking industry and efficiency seems to be given more attention recently (e.g. Ihsan and Kabir, 2002). The findings show that smaller board size and higher percentage of block ownership lead to better efficiency of Malaysian banks. The current prevailing situations in Malaysia are discussed to highlight the reasons behind these research findings. World Business Institute, Australia 2011-07 Article PeerReviewed application/pdf en http://irep.iium.edu.my/2230/1/A_panel_data_analysis_on_the_relationship_between_corporate_governance_and_bank_efficiency.pdf Adnan, Muhammad Akhyar and Htay, Sheila Nu Nu and Ab. Rashid, Hafiz Majdi and Mydin Meera, Ahamed Kameel (2011) A panel data analysis on the relationship between corporate governance and bank efficiency. Journal of Accounting, Finance and Economics, 1 (1). pp. 1-15. ISSN 1838-3459 http://www.wbiaus.org/index_JAFE.html |
| spellingShingle | HG1501 Banking Adnan, Muhammad Akhyar Htay, Sheila Nu Nu Ab. Rashid, Hafiz Majdi Mydin Meera, Ahamed Kameel A panel data analysis on the relationship between corporate governance and bank efficiency |
| title | A panel data analysis on the relationship between corporate governance and bank efficiency |
| title_full | A panel data analysis on the relationship between corporate governance and bank efficiency |
| title_fullStr | A panel data analysis on the relationship between corporate governance and bank efficiency |
| title_full_unstemmed | A panel data analysis on the relationship between corporate governance and bank efficiency |
| title_short | A panel data analysis on the relationship between corporate governance and bank efficiency |
| title_sort | panel data analysis on the relationship between corporate governance and bank efficiency |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/2230/1/A_panel_data_analysis_on_the_relationship_between_corporate_governance_and_bank_efficiency.pdf |
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