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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| Format: | Article |
| Language: | English |
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World Business Institute
2012
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| Online Access: | http://irep.iium.edu.my/23247/ http://irep.iium.edu.my/23247/1/Better_Boards_Towards_Higher_Profitability.pdf |
| _version_ | 1848779134838243328 |
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| author | Htay, Sheila Nu Nu |
| author_facet | Htay, Sheila Nu Nu |
| author_sort | Htay, Sheila Nu Nu |
| building | IIUM Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T15:12:57Z |
| format | Article |
| id | iium-23247 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:12:57Z |
| publishDate | 2012 |
| publisher | World Business Institute |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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 |
| spellingShingle | HG1501 Banking Htay, Sheila Nu Nu Better boards towards higher profitability |
| title | 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_short | Better boards towards higher profitability |
| title_sort | better boards towards higher profitability |
| topic | HG1501 Banking |
| 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 |