Corporate Governance and Bank Performance: Empirical Evidence from Nepal

10 Pages Posted: 14 Feb 2018

See all articles by Prerana Singh

Prerana Singh

Independent

Poonam Rai

Independent

Prakash Ojha

Independent

Rachana Gyawali

Independent

Rajesh Gupta

Quest International University

Date Written: February 2, 2018

Abstract

This study analyzed the impact and important of Corporate Governance on bank performance in the context of Nepal. The return on assets and return on equity are the independent variables that measure the bank performance in the context to Nepal. Board Size, Female Board Member, Financial Institution, CEO Duality, Independent Director, Firm Size, Firm Age, Earnings per Share and Capital Adequacy Ratio of the firms are the independent Corporate Governance variable. The data are collected from the Banking and Financial Statistics published by Nepal Rastra Bank, NRB Directives, legal provision incorporate in Companies Act, 2063 and concerned by-laws regarding corporate governance, the provision on Bank and Financial Institution Act, 2063;supervision reports of Nepal Rastra Bank.

The result shows that there is a significant impact of corporate governance on ROA as well as ROE in the financial institution. The findings of this study specify that elements of corporate governance such as the presence of independent director, firm size have a positive effect on the performance of firms. However, female board members, board size, board members, and the compensation of board members have negative effects on the performance of firms, as measured by the return on asset (ROA).

Keywords: Board Size and Composition, Duality, Audit Committee, Firm Size and Performance, Capital Adequacy, Return on Assets, Return on Equity

Suggested Citation

Singh, Prerana and Rai, Poonam and Ojha, Prakash and Gyawali, Rachana and Gupta, Rajesh, Corporate Governance and Bank Performance: Empirical Evidence from Nepal (February 2, 2018). Available at SSRN: https://ssrn.com/abstract=3117204

Prerana Singh

Independent ( email )

Poonam Rai

Independent

Prakash Ojha

Independent ( email )

Rachana Gyawali

Independent ( email )

Rajesh Gupta (Contact Author)

Quest International University ( email )

Kathmandu
Lalitpur
Perak +977
Nepal
9843704840 (Phone)

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