1,239
Views
0
CrossRef citations to date
0
Altmetric
Financial Economics

Corporate governance and default probability: The moderating role of bank’s efficiency

ORCID Icon, &
Article: 2266318 | Received 13 Dec 2022, Accepted 29 Sep 2023, Published online: 13 Oct 2023

References

  • Ahmed, T., Binte, M., Khan, Z. I., Hera, M., & Haque, M. (2020). Factors affecting banking bailout: A study on Bangladeshi commercial banks. Journal of Asian Business Strategy, 10(2), 184–18. https://doi.org/10.18488/journal.1006.2020.102.184.191
  • Alabdullah, T. T. Y., Nor, M. I., Ahmed, E. R., & Yahya, S. (2018). The determination of firm performance in emerging nations: Do board size and firm size matter? International Academic Journal of Accounting and Financial Management, 5(3), 57–66. https://doi.org/10.9756/IAJAFM/V5I2/1810017
  • Bakhit, W., & Bakhit, S. (2014). Banks’ stability: The effect of monetary policies in the light of global financial crisis. International Journal of Finance and Banking Studies, 3(2), 2147–4486. https://doi.org/10.20525/ijfbs.v3i2.184
  • Balagobei, S. (2019). Does board structure in banks really affect their efficiency? Research Journal of Social Science & Management, 9(1), 55–62.
  • Barine, K., & Minja, D. (2023). Effective corporate governance: Theory and best practices. Vernon Press.
  • Basel Committee on Banking Supervision (BCBS) (2006). Enhancing corporate governance for banking organizations. Bank for International Settlements.
  • Basharat, A., Arshad, A., & Khan, R. (2014). Efficiency, risk and profitability of microfinance industry in Pakistan: Statistical analysis. Pakistan Microfinance Network, 22(May), 1–10. https://www.findevgateway.org/sites/default/files/publications/files/efficiency_productivity_risk_and_profitability_of_microfinance_industry_in_pakistan_a_statistical_analysis.pdf
  • Berger, A. N., & De Young, R. (1997). Problem loans and cost efficiency in commercial banking. Journal of Banking and Finance, 19(3/4), 849–870. https://doi.org/10.1016/S0378-4266(97)00003-4
  • Berhe, A. G. (2023). Board structure and bank performance: Evidence from Ethiopia. Cogent Business & Management, 10(1). https://doi.org/10.1080/23311975.2022.2163559
  • Boachie, C. (2023). Corporate governance and financial performance of banks in Ghana: The moderating role of ownership structure. International Journal of Emerging Markets, 18(3), 607–632. https://doi.org/10.1108/IJOEM-09-2020-1146
  • Bouaziz, D., Salhi, B., & Jarboui, A. (2020). CEO characteristics and earnings management: Empirical evidence from France. Journal of Financial Reporting and Accounting, 18(1), 77–110. https://doi.org/10.1108/JFRA-01-2019-0008
  • Bouteska, A. (2020). Do board characteristics affect bank performance? Evidence from the eurozone. Journal of Asset Management, 21(6), 535–548. https://doi.org/10.1057/s41260-020-00181-2
  • Burki, A. A., & Ahmad, S. (2010). Bank governance changes in Pakistan: Is there a performance effect? Journal of Economics and Business, 62(2), 129–146. https://doi.org/10.1016/j.jeconbus.2009.08.002
  • Burki, A. A., & Niazi, G. S. K. (2010). Impact of financial reforms on efficiency of state- owned, private and foreign banks in Pakistan. Applied Economics, 42(24), 3147–3160. https://doi.org/10.1080/00036840802112315
  • Claessens, S., & Fan, J. P. H. (2002). Corporate governance in Asia: A survey. International Review of Finance, 3(2), 71–103. https://doi.org/10.1111/1468-2443.00034
  • Collins, H. (2011). Creative research: The theory and practice of research for the creative industries. AVA Publications.
  • Cotugno, M., D’Amato, A., Gallo, A., & Stefanelli, V. (2020). Do supervisory enforcement actions affect board composition? Corporate Governance an International Review, 29(1), 22–44. https://doi.org/10.1111/corg.12336
  • Crisóstomo, V. L., De Freitas Brandão, I., & López-Iturriaga, F. J. (2020). Large shareholders’ power and the quality of corporate governance: An analysis of Brazilian firms. Research in International Business and Finance, 51, 101076. https://doi.org/10.1016/j.ribaf.2019.101076
  • Deb, S., & Chandra, A. (2023). Corporate governance mechanism in an emerging economy: Synthesis and future directions. Business Law Review, 44(2), 85–99. https://kluwerlawonline.com/journalarticle/Business+Law+Review/44.2/BULA2023010
  • De Haan, J., & Vlahu, R. (2015). Corporate governance of banks: A survey of corporate governance of bank. Journal of Economic Surveys, 30(2), 228–277. https://doi.org/10.1111/joes.12101
  • Elamer, A. A., Ntim, C. G., & Abdou, H. A. (2020). Islamic governance, national governance, and bank risk management and disclosure in MENA countries. Business & Society, 59(5), 914–955. https://doi.org/10.1177/0007650317746108
  • Fang, H., Lee, J. S., Chung, C. P., Lee, Y. H., & Wang, W. H. (2020). Effect of CEO power and board strength on bank performance in China. Journal of Asian Economics, 69, 101215. https://doi.org/10.1016/j.asieco.2020.101215
  • Fanta, B. A., Kemal, S. K., & Waka, K. Y. (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
  • Farag, H., & Mallin, C. (2018). The influence of CEO demographic characteristics on corporate risk-taking: Evidence from Chinese IPOs. European Journal of Finance, 24(16), 1528–1551. https://doi.org/10.1080/1351847X.2016.1151454
  • Farmer, R. E. A. (2014). Financial stability and the role of the financial policy Committee. The Manchester School, 82(S1), 35–43. https://doi.org/10.1111/manc.12070
  • Fernandes, N., & Fich, E. M. (2023). Are outside directors with greater board tenure valuable? Evidence from the last credit crisis. Journal of Accounting and Public Policy, 42(1), 107037. https://doi.org/10.1016/j.jaccpubpol.2022.107037
  • Forbes, D. P., & Milliken, F. J. (1999). Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of Management Review, 24(3), 489–505. https://doi.org/10.2307/259138
  • Ghadamyari, M., & Eslami Mofid Abadi, H. (2020). The effects of corporate governance on banks’ performance (evidence from of Indian banks). International Economics Studies, 50(2), 17–28.
  • Ginesti, G., & Ossorio, M. (2020). The influence of family-related factors on intellectual capital performance in family businesses. Journal of Management & Governance, 25(2), 535–560. https://doi.org/10.1007/s10997-020-09510-4
  • Gontarek, W., & Belghitar, Y. (2020). CEO chairman controversy: Evidence from the post financial crisis period. Review of Quantitative Finance & Accounting, 56(2), 1–39. https://doi.org/10.1007/s11156-020-00906-9
  • Gruszczyński, M. (2020). The microeconometrics of corporate governance. In Financial microeconometrics (pp. 159–195). Springer International Publishing. https://doi.org/10.1007/978-3-030-34219-7_5
  • Gupta, N., & Mahakud, J. (2020). CEO characteristics and bank performance: Evidence from India. Managerial Auditing Journal, 35(8), 1057–1093. https://doi.org/10.1108/MAJ-03-2019-2224
  • Hayat, S. J. (2011). Efficiency analysis of commercial banks in Pakistan – A non parametric approach [ Lahore School of Economics Student Thesis].
  • Heemskerk, K. (2019). Promising avenue or dead end street? A meta analytic review of the Forbes and Milliken model of board behaviour. Corporate Governance the International Journal of Business in Society, 19(3), 471–489. https://doi.org/10.1108/CG-01-2018-0017
  • Hong, N. T. H., & Linh, T. K. (2023). Institutional investors, corporate governance and firm performance in an emerging market: Evidence from Vietnam. Cogent Economics & Finance, 11(1), 2159735. https://doi.org/10.1080/23322039.2022.2159735
  • Hopt, K. J. (2020). Corporate governance of banks and financial institutions: Economic theory, supervisory practice, evidence and policy. Evidence and Policy (March 13, 2020). European Corporate Governance Institute-Law Working Paper (507).
  • Jan, A. A., Lai, F. W., Asif, M., Akhtar, S., & Ullah, S. (2022). Embedding sustainability into bank strategy: Implications for sustainable development goals reporting. International Journal of Sustainable Development & World Ecology, 30(3), 1–15. https://doi.org/10.1080/13504509.2022.2134230
  • Jan, A. A., Lai, F. W., & Tahir, M. (2021). Developing an Islamic corporate governance framework to examine sustainability performance in Islamic banks and financial institutions. Journal of Cleaner Production, 315, 128099. https://doi.org/10.1016/j.jclepro.2021.128099
  • Javid, Y. A., & Iqbal, R. (2010). Corporate governance in Pakistan: Corporate valuation, ownership and financing. PIDE Working Papers, 57.
  • Khan, M. Z. (1998). Transforming banking in Pakistan. Study commissioned by ADB for RETA 5770: Study of financial markets in selected member countries, 28 August
  • Lee, S. K. (2023). Firms’ risk-taking for customers’ benefit and its relevance with performance relative to aspiration. Cogent Business & Management, 10(1), 2192842. https://doi.org/10.1080/23311975.2023.2192842
  • Liu, C., Li, Q., & Lin, Y. E. (2023). Corporate transparency and firm value: Does market competition play an external governance role? Journal of Contemporary Accounting & Economics, 19(1), 100334. https://doi.org/10.1016/j.jcae.2022.100334
  • Mili, M., & Alaali, Y. (2023). Does corporate governance quality improve credit ratings of financial institutions? Evidence from ownership and board structure. Corporate Governance the International Journal of Business in Society, 23(4), 867–887. ahead-of-print. https://doi.org/10.1108/CG-05-2022-0232
  • Mongiardino, I., & Plath, C. (2010).risk governance at large banks: Have any lessons been learned? Journal of Risk Management in Financial Institutions, 3, 116–123. https://www.ingentaconnect.com/content/hsp/jrmfi/2010/00000003/00000002/art00002
  • Mongid, A., Iramani, R. R., & Muazaroh, M. (2020). Value creation in the listed banks: Do governance matter? International Journal of Business and Society, 21(2), 917–930. https://doi.org/10.33736/ijbs.3302.2020
  • Naqvi, N., & Jones, E. (2020). Politicians, regulations, and banks advocate Basel. The Political Economy of Bank Regulation in Developing Countries: Risk and Reputation, 105. https://doi.org/10.1093/oso/9780198841999.003.0004
  • Nazir, M. S., & Afza, T. (2018). Does managerial behavior of managing earnings mitigate the relationship between corporate governance and firm value? Evidence from an emerging market. Future Business Journal, 4(1), 139–156. https://doi.org/10.1016/j.fbj.2018.03.001
  • Nazir, M. S., & Alam, A. (2010). The impact of financial restructuring on the performance of Pakistani banks: A DEA approach. COMSATS Institute of Information Technology Paper.
  • Nuswantara, D. A., Fachruzzaman, Prameswari, R. D., Suyanto, R. R., & Hendrati, I. M. (2023). The role of political connection to moderate board size, woman on boards on financial distress. Cogent Business & Management, 10(1), 2156704. https://doi.org/10.1080/23311975.2022.2156704
  • Onumah, J. M., & Duho, K. C. T. (2020). Impact of intellectual capital on bank efficiency in emerging markets: Evidence from Ghana. International Journal of Banking, Accounting and Finance, 11(4), 435–460. https://doi.org/10.1504/IJBAAF.2020.110303
  • Osore, S. A., Ngugi, P. K., & Ogollah, K. (2020). Influence of technological orientation on performance of conventional and Islamic banking in Kenya. Journal of Business and Strategic Management, 5(1), 1–14. https://doi.org/10.47941/jbsm.366
  • Pathan, S. (2009). Strong boards, CEO power and bank risk-taking. Journal of Banking and Finance, 33(1), 340–350. https://doi.org/10.1016/j.jbankfin.2009.02.001
  • Proença, C., Augusto, M., & Murteira, J. (2023). The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks. Finance Research Letters, 51, 103450. https://doi.org/10.1016/j.frl.2022.103450
  • Quintyn, M. (2007). Governance of financial supervisors and its effects – a stocktaking exercise. SUERF Studies, SUERF – The European Money and Finance Forum, number 2007/4.
  • Rashid, M. M. (2020). “Ownership structure and firm performance: The mediating role of board characteristics”. Corporate Governance the International Journal of Business in Society, 20(4), 719–737. https://doi.org/10.1108/CG-02-2019-0056
  • Rodrigues, R., Samagaio, A., & Felício, T. (2020). Corporate governance and R&D investment by European listed companies. Journal of Business Research, 115, 289–295. https://doi.org/10.1016/j.jbusres.2019.11.070
  • Roodman, D. (2009). How to do Xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86–136. https://doi.org/10.1177/1536867X0900900106
  • Rustam, A., & Rashid, K. (2015). A comparative study of the performance of local and foreign banks in Pakistan: Some ANOVA evidence. The IUP Journal of Bank Management, 14(1). http://www.kasbit.edu.pk/journal/index.htm
  • Sardari, A., Azeem, M. M., Hassan, S., & Bakhsh, K. (2013). Comparison of efficiency between pure Islamic banks and Islamic bank windows and role of Islamic banking in agriculture sector. Pakistan Journal of Agricultural Sciences, 50(1), 155–161. http://www.pakjas.com.pk
  • Shaari, J. A. N., Khalique, M., & Isa, A. H. B. M. (2011). Ranking of public and domestic private sector commercial banks in Pakistan on the basis of intellectual capital performance. KASBIT Business Journal, 4(2011), 61–68. http://kbj.kasbit.edu.pk/Volumes-Updated-2020/Vol4/Topic5.pdf
  • Siauwijaya, C. (2020). Analysis of factors that affect the capital structure and value of manufacturing firms in Indonesia. PalArch’s Journal of Archaeology of Egypt/egyptology, 17(7), 2833–2849.
  • Tahir, S. H., & Sabir, H. M. (2015). Ownership structures as determinants of financial decisions: Evidence from Pakistani family owned listed firms. Zbornik radova Međimurskog veleučilišta u Čakovcu, 6(1), 117–127.
  • Talpur, A. B. (2023). Market power and concentration-performance analysis of the banking sector: A comparative study of Singapore and Pakistan. Social Sciences & Humanities Open, 7(1), 100383. https://doi.org/10.1016/j.ssaho.2022.100383
  • Ullah, S. (2020). Role of corporate governance in bank’s efficiency in Pakistan. Studies in Business and Economics, 15(1), 243–258. https://doi.org/10.2478/sbe-2020-0018
  • Ullah, S., Majeed, A., Popp, J., & Bilan, Y. (2023). Determinants of bank’s efficiency in an emerging economy: A data envelopment analysis approach. PLoS One, 18(3), e0281663. https://doi.org/10.1371/journal.pone.0281663
  • Vafeas, N. (2005). Audit committees, boards, and the quality of reported earnings. Contemporary Accounting Research, 22(1), 093–122. https://doi.org/10.1506/1QYN-2RFQ-FKYX-XP84
  • Vitolla, F., Raimo, N., & Rubino, M. (2020). Board characteristics and integrated reporting quality: An agency theory perspective. Corporate Social Responsibility and Environmental Management, 27(2), 1152–1163. https://doi.org/10.1002/csr.1879
  • Waris, M., & Haji Din, B. (2023). Impact of corporate governance and ownership concentrations on timelines of financial reporting in Pakistan. Cogent Business & Management, 10(1), 1–19. https://doi.org/10.1080/23311975.2023.2164995
  • Westman, H. (2011). The impact of management and board ownership on profitability in banks with different strategies. Journal of Banking & Finance, 35(12), 3300–3318. https://doi.org/10.1016/j.jbankfin.2011.05.013
  • Zainal, N., Nassir, A. M., Kamarudin, F., & Law, S. H. (2020). Does bank regulation and supervision impedes the efficiency of microfinance institutions to eradicate poverty? Evidence from ASEAN-5 countries. Studies in Economics and Finance, 38(2), 272–302. https://doi.org/10.1108/SEF-10-2019-0414
  • Zaman, M. S., & Bhandari, A. K. (2020). Financial deregulation, competition and cost efficiency of Indian commercial banks: Is there any convergence? Indian Economic Review, 55(2), 1–30. https://doi.org/10.1007/s41775-020-00100-7
  • Zhu, H., Zhu, Q., & Ding, Z. (2020). The roles of Chinese CEOs in managing individualistic cultures in cross‐border mergers and acquisitions. Journal of Management Studies, 57(3), 664–697. https://doi.org/10.1111/joms.12556