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International Journal of Academic Research in Business and Social Sciences

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ISSN: 2222-6990

Literature Review on Corporate Governance Practices and Bank Performance in Asia Emerging Markets

Hasroleffendy Hassan, Fauziah Mohamad Yunus, Chaleeda Som Sak

http://dx.doi.org/10.6007/IJARBSS/v11-i12/11955

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To date, there have been many studies performed to evaluate the impact of corporate governance on the performance of banks. Nonetheless, most of the previous research employed different sets of corporate governance factors and in fact, no paper had been accomplished on Asia emerging markets except a few studies that used Return on Asset (ROA) and Tobin’s Q to represent the performance of banks. There were only limited papers that investigated corporate governance against the performance of banks in emerging Asia but either in Southeast Asian economies only or in a single country. The past studies also took different periods as their time basis for data analysis and did not consider the improvements of corporate governance mechanisms especially the progress of guidelines issued by the Basel Committee of Banking Supervision (BCBS). Moreover, prior papers applied different formulas and models to derive bank performance whereby the majority of the theses employed profitability, instead of bank-specific performance measures to gauge the banks’ performances. This paper explores the literature connected to this connection worldwide but particularly on banks operating in Asia emerging markets with emphasis on the 2007 financial predicament. Reviews of literature on non-bank corporations were also performed when the relevant studies on banks were not adequately done. Overall, the majority of the reviewed articles advocate the positive relationships between corporate governance practices and bank performance since the practices could safeguard the banks’ resilience.

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In-Text Citation: (Hassan et al., 2021)
To Cite this Article: Hassan, H., Yunus, F. M., & Sak, C. S. (2021). Literature Review on Corporate Governance Practices and Bank Performance in Asia Emerging Markets. International Journal of Academic Research in Business and Social Sciences, 11(12), 2411–2436.