Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality

The paper proposes a framework that captures the impact of board capital on bank assets quality (BAQ) in the Nigerian banking industry. The paper reviews literature on various corporate governance’ mechanisms that are instrumental to BAQ, specifically banks’ non-performing loans (NPLs). Based on the...

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Main Authors: Karaye, Abubakar Ibrahim, Ahmad Zaluki, Nurwati Ashikkin, Badru, Bazeet Olayemi, Gurama, Zakariya'u
Format: Article
Language:English
Published: UUM Press 2021
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/30038/1/GBMR%2013%2002%202021%2051-67.pdf
https://doi.org/10.32890/gbmr2021.13.2.4
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author Karaye, Abubakar Ibrahim
Ahmad Zaluki, Nurwati Ashikkin
Badru, Bazeet Olayemi
Gurama, Zakariya'u
author_facet Karaye, Abubakar Ibrahim
Ahmad Zaluki, Nurwati Ashikkin
Badru, Bazeet Olayemi
Gurama, Zakariya'u
author_sort Karaye, Abubakar Ibrahim
collection UUM
description The paper proposes a framework that captures the impact of board capital on bank assets quality (BAQ) in the Nigerian banking industry. The paper reviews literature on various corporate governance’ mechanisms that are instrumental to BAQ, specifically banks’ non-performing loans (NPLs). Based on the review, this study finds that common variables examined by literature are board size, independence and gender. The study also reveals that limited studies exist on the role of human and social capital of the banks’ board of directors. Therefore, evaluating boards’ human and social capital is likely to capture wider-range of boards’ resources, abilities, and chances of exercising control over the rising NPLs figures. In view of this emphasis, this study advocates the use of agency and resource dependence as well as the human capital theories to examine boards’ influence on NPLs. This is because the human and social capital of the board of directors play vital role in the resources needed by directors to function effectively and develop strategies needed for banks to ensure that their loan portfolios are of good quality.
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spelling uum-300382023-11-28T11:28:38Z https://repo.uum.edu.my/id/eprint/30038/ Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality Karaye, Abubakar Ibrahim Ahmad Zaluki, Nurwati Ashikkin Badru, Bazeet Olayemi Gurama, Zakariya'u HG Finance The paper proposes a framework that captures the impact of board capital on bank assets quality (BAQ) in the Nigerian banking industry. The paper reviews literature on various corporate governance’ mechanisms that are instrumental to BAQ, specifically banks’ non-performing loans (NPLs). Based on the review, this study finds that common variables examined by literature are board size, independence and gender. The study also reveals that limited studies exist on the role of human and social capital of the banks’ board of directors. Therefore, evaluating boards’ human and social capital is likely to capture wider-range of boards’ resources, abilities, and chances of exercising control over the rising NPLs figures. In view of this emphasis, this study advocates the use of agency and resource dependence as well as the human capital theories to examine boards’ influence on NPLs. This is because the human and social capital of the board of directors play vital role in the resources needed by directors to function effectively and develop strategies needed for banks to ensure that their loan portfolios are of good quality. UUM Press 2021 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/30038/1/GBMR%2013%2002%202021%2051-67.pdf Karaye, Abubakar Ibrahim and Ahmad Zaluki, Nurwati Ashikkin and Badru, Bazeet Olayemi and Gurama, Zakariya'u (2021) Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality. Global Business Management Review (GBMR), 13 (2). pp. 51-67. ISSN 2180-2416 https://e-journal.uum.edu.my/index.php/gbmr/article/view/15380 https://doi.org/10.32890/gbmr2021.13.2.4 https://doi.org/10.32890/gbmr2021.13.2.4
spellingShingle HG Finance
Karaye, Abubakar Ibrahim
Ahmad Zaluki, Nurwati Ashikkin
Badru, Bazeet Olayemi
Gurama, Zakariya'u
Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality
title Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality
title_full Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality
title_fullStr Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality
title_full_unstemmed Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality
title_short Literature Gap on Corporate Governance Mechanisms and Bank Asset Quality
title_sort literature gap on corporate governance mechanisms and bank asset quality
topic HG Finance
url https://repo.uum.edu.my/id/eprint/30038/1/GBMR%2013%2002%202021%2051-67.pdf
https://doi.org/10.32890/gbmr2021.13.2.4
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