Does Effective Corporate Governance Enhance the Financial Performance of Banks?

Asif Saeed Naji; Abdul Ghaffar; Muhammad Shujaat Saleem

doi:10.52633/xy2qg592

Authors

Asif Saeed Naji Bahria University, Karachi, Pakistan. Author
Abdul Ghaffar Hamdard University, Karachi, Pakistan. Author
Muhammad Shujaat Saleem Iqra University, Karachi, Pakistan. Author

DOI:

https://doi.org/10.52633/xy2qg592

Keywords:

Governance, Ownership Structure, CEO Duality, Corporate Governance Practices

Abstract

This study has been conducted to find out the relationship between corporate governance practices and the performance of banks. Corporate governance provides a structure to control and direct the organizations or banks. Theoretically, it is said that corporate governance practices improve the performance of the banks. This study reveals the same facts, the majority of the factors affect the performance of the banks. The independent variables of this study are Transparency, Independence, Ownership structure, Audit committee, BOD, and CEO duality. This study is based on primary data, questionnaires were developed and distributed to top officials of banks. Results indicate that all independent variables have a significant impact on the performance of banks except one variable which is transparency. Regulatory bodies should play their roles in the implementation of corporate governance practices on banks because it improves the overall performance of the banks. This study is useful for policymakers dealing with corporate governance practices and indicating the important variables affecting the performance of banks. This study is based on primary data, in future secondary data can also be used, or mixed methods can be used for future studies.

Author Biographies

Asif Saeed Naji, Bahria University, Karachi, Pakistan.

Bahria University, Karachi, Pakistan.
Abdul Ghaffar, Hamdard University, Karachi, Pakistan.

Hamdard University, Karachi, Pakistan.
Muhammad Shujaat Saleem, Iqra University, Karachi, Pakistan.

Iqra University, Karachi, Pakistan.

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