1,879
Views
4
CrossRef citations to date
0
Altmetric
Accounting, Corporate Governance & Business Ethics

Board structure and bank performance: Evidence from Ethiopia

Article: 2163559 | Received 04 Nov 2022, Accepted 23 Dec 2022, Published online: 11 Feb 2023

References

  • Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94, 291–20. https://doi.org/10.1016/j.jfineco.2008.10.007
  • Adams, R. B., Hermalin, B., & Ferreira, D. (2005). Powerful CEOs and their impact on corporate performance. Review of Financial Studies, 18(4), 1403–1432. https://doi.org/10.1093/rfs/hhi030
  • Adams, R. B., & Mehran, H. (2003). Is corporate governance different for bank holding companies? Federal Reserve Bank of New York Economic Policy Review, 123–142. http://dx.doi.org/10.2139/ssrn.387561
  • Adams, R. B., & Mehran, H. (2012). Bank board structure and performance: Evidence for large bank holding companies. Journal of Financial Intermediation, 21(2), 243–267. https://doi.org/10.1016/j.jfi.2011.09.002
  • Adusei, M. (2011). Board Structure and Bank Performance in Ghana. Journal of Money, Investment and Banking, 1(19), 72–84.
  • Agoraki, M.-E., Manthos, D., & Panagiotis, S. (2010). The effect of board size and composition on bank efficiency. International Journal of Banking, Accounting and Finance, 2(4), 357–386(30. https://doi.org/10.1504/IJBAAF.2010.037155
  • Agrawal, A., & Knoeber, C. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377–397. https://doi.org/10.2307/2331397
  • Anderson, R. C., Mansi, S., & Reeb, D. M. (2004). Board characteristics, accounting report integrity, and the cost of debt. Journal of Accounting and Economics, 37(3), 315–342. https://doi.org/10.1016/j.jacceco.2004.01.004
  • Andres, P., & Vallelado, E. (2008). Corporate governance in banking: The role of board of directors. Journal of Banking and Finance, 32(12), 2570–2580. https://doi.org/10.1016/j.jbankfin.2008.05.008
  • Arora, A., & Bodhanwala, S. (2018). Relationship between corporate governance index and firm performance: Indian evidence. Global Business Review, 19(3), 675–689. https://doi.org/10.1177/0972150917713812
  • Arouri, H., Hossain, M., & Muttakin, M. (2011). Ownership structure, corporate governance and bank performance: Evidence from GCC countries. Corporate Ownership and Control, 8(4), 365–372. https://doi.org/10.22495/cocv8i4c3art5
  • Ashbaugh-Skaife, H., Collins, D. W., & LaFond, R. (2006a). The effects of corporate governance on firms’ credit ratings. Journal of Accounting and Economics, 42(1–2), 203–243. https://doi.org/10.1016/j.jacceco.2006.02.003
  • Athanasoglou, P. P., Brissimis, S. N., & Delis, M. D. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. International Financial Markets, Institutions & Money, 18(2), 121–136. https://doi.org/10.1016/j.intfin.2006.07.001
  • Azeez, A. A. (2015). Corporate governance and firm performance: Evidence from Sri Lanka. Journal of Finance, 3(1), 180–189. https://doi.org/10.15640/jfbm.v3n1a16
  • Babatunde, M. A., & Olaniran, O. (2009). The effects of internal and external mechanism on governance and performance of corporate firms in Nigeria. Corporate Ownership & Control, 7(2), 330–344. https://doi.org/10.22495/cocv7i2c3p1
  • Babić, V., Nikolić, J., & Simić, M. (2020). Board structure and bank performance: Evidence from Serbian banking sector. Facta Universitatis. Series: Economics and Organization, 057–068. https://doi.org/10.22190/FUEO191006005B
  • Barth, M. E. (2006). Including estimates of the future in today’s financial statements. Accounting Horizons, 20(3), 271–285. https://doi.org/10.2308/acch.2006.20.3.271
  • Basel Committee on Banking Supervision, 2006. Enhancing Corporate Governance for Banking Organizations.
  • Bebeji, A., Mohammed, A., & Tanko, M. (2015). The effect of board size and composition on the financial performance of banks in Nigeria. African Journal of Business Management, 9(16), 590–598. https://doi.org/10.5897/AJBM2015.7797
  • Bektas, E., & Kaymak, T. (2009). Governance mechanisms and ownership in an emerging market: The case of Turkish banks. Emerging Markets Finance & Trade, 45(6), 20–32. https://doi.org/10.2753/REE1540-496X450602
  • Belda, H. J. (2016). Ethiopian banking sector development. Research Journal of Finance and Accounting, 7(3), 2222–1697.
  • Bhagat, S., & Black, B. (2002). The non-correlation between board Independence and long-term firm performance. Journal of Corporation Law, 27, 231–273.
  • Brickley, J. A., Coles, J. L., & Jarrell, G. (1997). Leadership structure: Separating the CEO and chairman of the board. Journal of Corporate Finance, 3(3), 189–220. https://doi.org/10.1016/S0929-1199(96)00013-2
  • Brown, L. D., & Caylor, M. L. (2005). Corporate governance and firm performance. The Accounting Review, 80(2), 423–440. https://doi.org/10.2308/accr.2005.80.2.423
  • Busta, I. (2007). Board effectiveness and the impact of the legal family in the European banking industry. FMA European Conference, Barcelona–Spain
  • Byron, K., & Post, C. (2016). Women on boards of directors and corporate social performance: A meta‐analysis. Corporate Governance: An International Review, 24(4), 428–442. https://doi.org/10.1111/corg.12165
  • Caiazza, S., Cotugno, M., Fiordelisi, F., & Stefanelli, V. (2018). The spillover effect of enforcement actions on bank risktaking. Journal of Banking and Finance, 91, 146–159. https://doi.org/10.1016/j.jbankfin.2018.04.008
  • Campbell, K., & Mínguez-Vera, A. (2008). Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83(3), 435–451. https://doi.org/10.1007/s10551-007-9630-y
  • Caprio, G., & Levine, R., 2002. Corporate governance of banks: Concepts and international observations. Paper Presented at the Global Corporate Governance Forum Research Network Meeting. World Bank, IMF, and Brookings Institution Conference, Building the Pillars of Financial Sector Governance: The Roles of Public and Private Sectors.
  • Carter, D. A., D’Souza, F., Simkins, B. J., & Simpson, W. G. (2010). The gender and ethnic diversity of US boards and board committees and firm financial performance. Corporate Governance: An International Review, 18(5), 396–414. https://doi.org/10.1111/j.1467-8683.2010.00809.x
  • Carter, D. A., Simkins, B. J., & Simpson, W. G. (2003). Corporate governance, board diversity, and firm value. The Financial Review, 38(1), 33–53. https://doi.org/10.1111/1540-6288.00034
  • Catalyst. (2010). Catalyst Census of Women Board Directors of the Fortune 500.
  • Chang, B., & Dutta, S. (2012). Dividends and corporate governance: Canadian evidence. The IUP Journal of Applied Finance, 18(4), 5–30.
  • Cheng, S. (2008). Board size and the variability of corporate governance. Journal of Financial Economics, 87(2), 157–176. https://doi.org/10.1016/j.jfineco.2006.10.006
  • Chen, C. R., Guo, W., & Mande, V. (2006). Corporate value, managerial stockholdings and investments of Japanese firms. Journal of International Financial Management and Accounting, 17(1), 29–51. https://doi.org/10.1111/j.1467-646X.2006.00120.x
  • Coles, J. L., Daniel, N. D., & Naveen, L. (2008). Boards: Does one size fit all? Journal of Financial Economics, 87(2), 329–356. https://doi.org/10.1016/j.jfineco.2006.08.008
  • Conyon, M. J., & Peck, S. I. (1998). Board control, remuneration committees, and top management compensation. Academy of Management Journal, 41(2), 146–157. https://doi.org/10.5465/257099
  • Cornett, M. M., McNutt, J., & Tehranian, H. (2009). Corporate governance and earnings management at large U.S. bank holding companies. Journal of Corporate Finance, 15(4), 412–430. https://doi.org/10.1016/j.jcorpfin.2009.04.003
  • Dahawy, K. (2007). Developing nations and corporate governance: The story of Egypt. The American University.
  • Dalton, D. R., Catherine, M. D., Jonathan, L. J., & Alan, E. E. (1999). Number of directors and financial performance: A meta-analysis. Academy of Management Journal, 42(6), 674–686. https://doi.org/10.5465/256988
  • Denis, D. K., & McConnell, J. J. (2003). International corporate governance. The Journal of Financial and Quantitative Analysis, 38(1), 1–36. https://doi.org/10.2307/4126762
  • Dezsö, C. L., & Ross, D. G. (2012). Does female representation in top management improve firm performance? A panel data investigation. Strategic Management Journal, 33(9), 1072–1089. https://doi.org/10.1002/smj.1955
  • Eagly, A., & Carli, L. (2003). The female leadership advantage: An evaluation of the evidence. The Leadership Quarterly, 14(6), 807–834. https://doi.org/10.1016/j.leaqua.2003.09.004
  • Eisenberg, T., Sundgren, S., & Wells, M. T. (1998). Larger board size and decreasing firm value in small firms. Journal of Financial Economics, 48(1), 35–54. https://doi.org/10.1016/S0304-405X(98)00003-8
  • El-Chaarani, H. (2014). The impact of corporate governance on the performance of Lebanese banks. The International Journal of Business and Finance Research, 8(5), 35–46. https://ssrn.com/abstract=2456004
  • Fama, E. F. (1985). What’s different about bank? Journal of Monetary Economics, 15(1), 29–39. https://doi.org/10.1016/0304-3932(85)90051-0
  • Fama, E. F., & Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325. https://doi.org/10.1086/467037
  • Fanta, A. B., Kemal, K. S., & Waka, Y. K. (2013). Corporate governance and impact on bank performance. Journal of Finance and Accounting, 1(1), 19–26. https://doi.org/10.11648/j.jfa.20130101.12
  • Farrell, K. A., & Hersch, P. L. (2005). Additions, to corporate boards: The effect of gender. Journal of Corporate Finance, 11(1–2), 85–106. https://doi.org/10.1016/j.jcorpfin.2003.12.001
  • Fauzi, F., & Locke, S. (2012). Board structure, ownership structure and firm performance: A study of New Zealand listed-firms. Asian Academy of Management Journal of Accounting of Finance, 8(2), 43–67. https://hdl.handle.net/10289/7793
  • Flannery, M. J., & Hankins, K. W. (2013). Estimating dynamic panel models in corporate finance. Journal of Corporate Finance, 19, 1–19. https://doi.org/10.1016/j.jcorpfin.2012.09.004
  • García-Meca, E., García-Sánchez, I. M., & Martínez-Ferrero, J. (2015). Board diversity and its effects on bank performance: An international analysis. Journal of Banking and Finance, 53, 202–214. https://doi.org/10.1016/j.jbankfin.2014.12.002
  • Goyal, V. K., & Park, C. W. (2002). Board leadership structure and CEO turnover. Journal of Corporate Finance, 8(1), 49–66. https://doi.org/10.1016/S0929-1199(01)00028-1
  • Grove, H., Patelli, L., Victoravich, L., & Xu, P. (2011). Corporate governance and performance in the wake of the financial crisis: Evidence from US commercial banks. Corporate Governance: An International Review, 19(5), 418–436. https://doi.org/10.1111/j.1467-8683.2011.00882.x
  • Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51(3), 314–338. https://doi.org/10.1016/j.jacceco.2011.01.005
  • Hermalin, B. E., & Weisbach, M. S. (2003). Boards of directors as an endogenously determined institution: A survey of the economic literature. Economic Policy Review, 9(1), 7–26.
  • Jackling, B., & Johl, S. (2009). Board structure and firm performance: Evidence from India’s top companies. Corporate Governance: An International Review, 17(4), 492–509. https://doi.org/10.1111/j.1467-8683.2009.00760.x
  • Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. The Journal of Finance, 48(3), 831–880. https://doi.org/10.1111/j.1540-6261.1993.tb04022.x
  • Jermias, J. (2007). The effects of corporate governance on the relationship between innovative efforts and performance. European Accounting Review, 16(4), 827–854. https://doi.org/10.1080/09638180701707045
  • Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2013). Corporate governance and corporate social responsibility disclosure: Evidence from the US banking sector. Journal of Business Ethics, 125(4), 601–615. https://doi.org/10.1007/s10551-013-1929-2
  • Johl, S. K., Kaur, S., & Cooper, B. J. (2015). Board characteristics and firm performance: Evidence from Malaysian public listed firms. Journal of Economy, Business and Management, 3(2), 239–243. https://doi.org/10.7763/JOEBM.2015.V3.187
  • Kao, M. F., Hodgkinson, L., & Jaafar, A. (2019). Ownership structure, board of directors and firm performance: Evidence from Taiwan. Corporate Governance: The International Journal of Business in Society, 19(1), 189–216. https://doi.org/10.1108/CG-04-2018-0144
  • Kefiyalew, B. B., & Dagnachew, A. H. (2020). Corporate governance and its effects on financial performance of banks evidence from selected private commercial banks in Ethiopia. Journal of Economics and International Finance, 12(4), 187–195. https://doi.org/10.5897/JEIF2020.1029
  • Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 35(3), 375–400. https://doi.org/10.1016/S0165-4101(02)00059-9
  • Krivogorsky, V. (2006). Ownership, board structure, and performance in continental Europe. International Journal of Accounting, 41(2), 176–196. https://doi.org/10.1016/j.intacc.2006.04.002
  • Lee, S. P., & Isa, M. (2015). Directors’ remuneration, governance and performance: The case of Malaysian banks. Managerial Finance, 41(1), 26–44. https://doi.org/10.1108/MF-08-2013-0222
  • Levine, R., 2004. The Corporate governance of banks: a concise discussion of concepts and evidence. Working Paper. World Bank.
  • Liang, Q., Xu, P., & Jiraporn, P. (2013). Board characteristics and Chinese bank performance. Journal of Banking & Finance, 37(8), 2953–2968. https://doi.org/10.1016/j.jbankfin.2013.04.018
  • Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance. The business lawyer, 59–77. https://www.jstor.org/stable/40687360
  • Mahmood, I., & Abbas, Z. (2011). Impact of corporate governance on financial performance of banks in Pakistan. Institute of Interdisciplinary Business Research, 2(12), 217–228.
  • Mak, Y. T., & Kusnadi, Y. (2004). Size really matters: Further evidence on the negative relationship between board size and firm value. Pacific-Basin Finance Journal, 12(1), 1–18. https://doi.org/10.1016/j.pacfin.2004.09.002
  • Mak, Y. T., & Kusnadi, Y. (2005). Size really matters: Further evidence on the negative relationship between board size and firm value. Pacific-Basin Finance Journal, 13(3), 301–318. https://doi.org/10.1016/j.pacfin.2004.09.002
  • Mishra, R. K., & Kapil, S. (2018). Effect of board characteristics on firm value: Evidence from India. South Asian Journal of Business Studies, 7(1), 41–72. https://doi.org/10.1108/SAJBS-08-2016-0073
  • Mishra, C. S., & Nielsen, J. F. (2000). Board impedance and compensation policies in large bank holding companies. Financial Management, 29(3), 51–70. https://doi.org/10.2307/3666229
  • Mohan, N., & Ruggiero, J. (2007). Influence of firm performance and gender on CEO compensation. Applied Economics, 39(9), 1107–1113. https://doi.org/10.1080/00036840500474264
  • Monks, R., & Minow, N. (2004). Corporate Governance. Blackwell Business.
  • Nguyen, T., Locke, S., & Reddy, K. (2014). A dynamic estimation of governance structures and financial performance for Singaporean companies. Economic Modelling, 40(C), 1–11. https://doi.org/10.1016/j.econmod.2014.03.013
  • Nguyen, T., Locke, S., & Reddy, K. (2015). Does boardroom gender diversity matter? Evidence from a transitional economy. International Review of Economics & Finance, 37, 184–202. https://doi.org/10.1016/j.iref.2014.11.022
  • Nguyen, B. D., & Nielsen, K. M. (2010). The value of independent directors: Evidence from sudden death. Journal of Financial Economics, 98(3), 550–567. https://doi.org/10.1016/j.jfineco.2010.07.004
  • Ntim, C. G. (2015). Board diversity and organizational valuation: Unravelling the effects of ethnicity and gender. Journal of Management & Governance, 19(1), 167–195. https://doi.org/10.1007/s10997-013-9283-4
  • Okpara, J. O. (2010). Perspectives on corporate governance challenges in a sub-saharan African economy. Journal of Business and Policy Research, 5(1), 110–122.
  • Pandya, H. (2011). Corporate governance structures and financial performance of selected Indian banks. Journal of Management & Public Policy, 2(2), 4–21.
  • Pasiouras, F., & Kosmidou, K. (2007). Factors influencing the profitability of domestic and foreign commercial banks in the European Union. Research in International Business and Finance, 21(2), 222–237. https://doi.org/10.1016/j.ribaf.2006.03.007
  • Pathan, S., & Faff, R. (2013). Does board structure in banks really affect their performance? Journal of Banking and Finance, 37(5), 1573–1589. https://doi.org/10.1016/j.jbankfin.2012.12.016
  • Pathan, S., Skully, M., & Wickramanayake, J. (2007). Board size, independence and performance: an analysis of Thai banks. Asia-pacific financial markets. Springer. 14.3. 211–227. https://doi.org/10.1007/s10690-007-9060-y
  • Pi, L., & Timme, S. G. (1993). Corporate control and bank efficiency. Journal of Banking and Finance, 17(2–3), 515–530. https://doi.org/10.1016/0378-4266(93)90050-N
  • Reddy, K., Locke, S., Scrimgeour, F., & Gunasekarage, A. (2008). Corporate governance practices of small cap companies and their financial performance: An empirical study in New Zealand. International Journal of Business Governance and Ethics, 4(1), 51–78. https://doi.org/10.1504/IJBGE.2008.017891
  • Robinson, G., & Dechant, K. (1997). Building a business case for diversity. Academy of Management Executive, 11, 21–30. https://doi.org/10.5465/ame.1997.9709231661
  • Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate Governance: An International Review, 15(2), 404–413. https://doi.org/10.1111/i.1467-8683.2007.00570.x
  • Rosenstein, S., & Wyatt, J. G. (1990). Outside directors, board Independence, and shareholder wealth. Journal of Financial Economics, 26(2), 175–191. https://doi.org/10.1016/0304-405X(90)90002-H
  • Sheikh, A. N., Wang, Z., & Khan, S. (2013). The impact of internal attributes of OECD on firm performance: Evidence from Pakistan. International Journal of Commerce and Management, 23(1), 38–55. https://doi.org/10.1108/10569211311301420
  • Shukla, A., Sivasankaran, N., Singh, P., Kanagaraj, A., & Chakraborty, S. (2021). Do women directors impact the risk and return of Indian banks? IIM Kozhikode Society & Management Review, 10(1), 44–65. https://doi.org/10.1177/2277975220938013
  • Sierra, G. E., Talmor, E., & Wallace, J. S. (2006). An examination of multiple governance forces within bank holding companies. Journal of Financial Services Research, 29(2), 105–123. https://doi.org/10.1007/s10693-006-5921-1
  • Singh, D. A., & Gaur, A. S. (2009). Business group affiliation, firm governance, and firm performance: Evidence from China and India. Corporate Governance. An International Review, 17(4), 411–425. https://doi.org/10.1111/j.1467-8683.2009.00750.x
  • Skała, D., & Weill, L. (2018). Does CEO gender matter for bank risk? Economic Systems, 42(1), 64–74. https://doi.org/10.1016/j.ecosys.2017.08.005
  • Srinidhi, B., Gul, F. A., & Tsui, J. (2011). Female directors and earnings quality. Contemporary Accounting Research, 28(5), 1610–1644. https://doi.org/10.1111/j.1911-3846.2011.01071.x
  • Staikouras, P., Christos, S., & Agoraki, M. E. (2007). The Effect of Board Size and Composition on European Bank Performance. European Journal of Law and Economics, 23(1), 1–27. https://doi.org/10.1007/s10657-007-9001-2
  • Subrahmanyam, V., Rangan, N., & Rosenstein, S. (1997). The role of outside directors in bank acquisitions. Financial Management, 26(3), 23–36. https://doi.org/10.2307/3666211
  • Tanna, S., Pasiouras, F., & Nnadi, M. (2011). The effect of board size and composition on the efficiency of UK banks. International Journal of the Economics of Business, 18(3), 441–462. https://doi.org/10.1080/13571516.2011.618617
  • Wintoki, M. B., Linck, J. S., & Netter, J. M. (2012). Endogeneity and the dynamics of corporate governance. Journal of Financial Economics, 105(3), 581–606. https://doi.org/10.1016/j.jfineco.2012.03.005
  • Yasser, Q. R., Al Mamun, A., & Seamer, M. (2017). Do corporate boards affect firm performance? New evidence from an emerging economy. International Journal of Productivity and Performance Management, 66(6), 724–741. https://doi.org/10.1108/IJPPM-06-2015-0085
  • Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40(2), 185–212. https://doi.org/10.1016/0304-405X(95)00844-5
  • Yihun, W. A., Kolech, A. G., & Tole, M. G. (2019). The impact of corporate governance mechanisms on the performance of commercial banks: The case of private banks inEthiopia. Financial Studies, 23(1 (83), 6–24. http://hdl.handle.net/10419/231671
  • Zulkafli, A. H., & Samad, F. A. (2007). Corporate governance and performance of banking firms: Evidence from Asian emerging markets. In Issues in corporate governance and finance. Emerald Group Publishing Limited. 49–74. https://doi.org/10.1016/S1569-3732(07)12003-X