Corporate Governance and Non–Performing Loans: Evidence From Listed Banks in Sri Lanka

Balagobei, S. (2019). Corporate governance and non - performing loans: evidence from listed banks in Sri Lanka, International Journal of Accounting & Business Finance, 5(1), 72-85.

14 Pages Posted: 17 Jan 2020

Date Written: December 27, 2019

Abstract

Non-performing loans (NPLs) plays a significant role as they reflect the credit quality of the loan portfolio of banks, and in aggregate terms, reflect the credit quality of the loan portfolio of the banking sector in a country. The study aims to examine the influence of corporate governance on non-performing loans of listed banks in Sri Lanka for the period from 2013 to 2017. In this study, listed banks are selected as sample for the purpose of data analysis with help of Pearson’s correlation and multiple regressions. Secondary data from the annual reports of banks and journals was used for the analysis purpose. The findings show that board activities have a significant influence on non-performing loans of listed banks in Sri Lanka whereas other corporate governance variables such as board size, board independence and CEO duality have no significant influence on non-performing loans. This study would hopefully benefit to the academicians, researchers, policy-makers and practitioners of Sri Lanka and other similar countries.

Keywords: Corporate Governance, Board Activities, Non-Performing Loans

JEL Classification: G30

Suggested Citation

Balagobei, Saseela, Corporate Governance and Non–Performing Loans: Evidence From Listed Banks in Sri Lanka (December 27, 2019). Balagobei, S. (2019). Corporate governance and non - performing loans: evidence from listed banks in Sri Lanka, International Journal of Accounting & Business Finance, 5(1), 72-85.. Available at SSRN: https://ssrn.com/abstract=3510189

Saseela Balagobei (Contact Author)

University of Jaffna ( email )

Jaffna
Sri Lanka

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