The Impact of Corporate Governance on Bank Performance: Empirical Evidence from Bangladesh
Keywords:
corporate governance, the board of directors, ROA, ROE, EPS
Abstract
This paper effort to find out the impact of corporate governance practices on bank performance in Bangladesh. In this paper, we examine 85 observations from 17 publicly traded commercial banks listed in Dhaka Stock Exchange (DSE) over the period of 2013-2017. We use the econometric model and pooled ordinary least square regression analysis to find out the correlations and regression among independent variables (size of the board, board composition, and chief executive officer status) and dependent variables (return on asset, return on equity and earnings per share). This research reveals that the board of director has a positive significant impact on ROA, ROE, and EPS. Independent board of director has a positive significant impact on ROE and EPS. Chief executive officer has a positive significant impact on ROA. In addition, most of the cases large bank size positively affecting the performance of Bangladeshi bank. Finally, there is a positive significant relationship between corporate governance and bank performance in Bangladesh.
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2019-01-18
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