An empirical examination of the impact of country-level corporate governance on profitability of Indian banks
أغسطس 05, 2020
DOI:
Publisher: Wiley
The main aim of the present study is to examine the impact of country-level corporate governance on the profitability of Indian banks using a sample of 61 banks that is, 42 private and 19 public banks. The study employs descriptive statistics, correlation analysis, regression analysis of two-way variable intercept random effect model, and robustness checks including robust regression, Generalized Methods of Moments, and Panel Correction Standard Error. The results reveal that country-level corporate governance has a significant impact on the profitability of Indian banks. Private banks demonstrate better performance over public banks and the effect of country-level governance on the profitability of private banks is positive and it is better than public banks. Further, the results show that demonetisation has a significant negative impact on the profitability of Indian banks as measured by Return on Assets and Return on Equity, but it also has a significant positive effect in the case of Net Interest Margin. The findings of the current study have considerable implications for regulators, policymakers, bankers, analysts, and academicians. Regulations and several policy measures could be introduced to improve the profitability of Indian banks. To promote greater transparency, better accountability, strong rule of law, and corporate governance, corruption must be eliminated to enhance higher profitability of Indian banks. This paper presents novel evidence linking country-level corporate governance to the profitability of banks in the context of India, as an emerging economy. Therefore, it bridges an existing gap in the body of literature on the profitability of banks in India
Other Researches
An examination of consumers’ adoption of internet of things (IoT) in Indian banks
The purpose of this study is to find out the impact of awareness, privacy & safety, cost, convenience, social influence, and habits on the adoption of IoT in Indian banks. The sample size of 467 Indian customers has been taken for the study. The Con...
Due to overconsumption, there is no significant urgency than the climate emergency for the publicity of green products that may conceivably led to reducing environmental impact. Considering the limited studies as a means of comparing green behaviour...
The aim of this study is to examine the factors that influence the financial performance of Indian listed companies during the period ranging from 2010 to 2016. The sample size consists of 1598 companies listed in Mumbai Stock Exchange (MSE) in Indi...
The paper examines the effect of family ownership concentration (FMOC) on real earnings management (REM) in manufacturing firms listed on Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). Data are gathered from 1,056 firm-year observat...
Credit policy plays a vital role in the operational efficiency of credit departments as it reduces the ambiguity of credit departments' functions by giving clear guidelines and instructions. It also reduces the loan default and speeds up accounts re...
Islamic Finance and Corporate Governance: A proposed Universal Mode
The purpose of this paper is to systematically synchronise the development of Shari'ah governance in the light of Islamic epistemology. The paper explores governance from the Islamic point of view by referring to various verses from the Holy Qur'an....
Corporate governance plays a vital role in creating a corporate culture of consciousness, transparency, and openness. In this context, this paper provides a brief view about the background of corporate governance mechanisms in India and Gulf Corpora...
The determinants of liquidity of Indian listed commercial banks: A panel data approach
The aim objective of this study is to examine the liquidity determinants of Indian listed commercial banks. The study has applied both GMM and pooled, fixed and random effect models to a panel of 37 commercial banks listed on the Bombay Stock Exchan...
The current paper examines the impact of oil price (OP) fluctuations on Islamic banking investments growth in the UAE. Besides, OP, the study also uses other variables like Gross Domestic Product and Foreign Direct Investment to identify the determi...
This paper empirically analyzes the impact of liquidity risk on key financial performance aspects of Islamic banks in the UAE. To document the association between liquidity risk and other performance ratios, time series data are taken for full-fledg...
The determinants of profitability of Indian commercial banks: A panel data approach
The current study examines the determinants of profitability of Indian commercial banks. The analysis is conducted over a period of 10 years in which the Indian banking sector has gone under different changes such as demonetization and issues relate...
The impact of demonetization on Indian firms’ performance: Does company’s age make a difference?
The main aim of this paper is to evaluate the impact of demonetization on Indian firm’s quarterly financial performance before and after demonetization period (March-December, 2017), and to find out if companies’ age helps to face financial disrupti...
Purpose The purpose of this paper is to identify the critical success factors for sustainable growth of the Indian banking sector and develop a model for Indian banks by using interpretive structural modelling (ISM). It suggests some of the critical...
This study examined the influence of employee empowerment on organizational commitment, and the level to which Tribalism plays a role in the relationship between the former two variables in the context of Islamic banks in Yemen. Indeed, the rational...
The paper examines the role of Islamic banking investments in enhancing the emerging economic growth of United Arab Emirates (UAE). The study uses annual time series data to examine the relationship between the variables. Autoregressive distributed ...
Financial Performance Comparison of Islamic and conventional banks in the United Arab Emirates (UAE)
This paper examines the financial performance of Islamic and commercial banks in the United Arab Emirates (UAE). The paper gives an empirical insights and comparisons between the performance of Islamic and conventional banking sectors. The sample of...
This study investigates the impact of political instability, macroeconomic and bank-specific factors on the profitability of Islamic banks in the context of Yemen. The study used two common measures of profitability, namely, Return on Assets (ROA) a...
The present study aims to measure and evaluate the liquidity, profitability and solvency of Islamic and commercial banks in the United Arab Emirates (UAE). The study has used a sample of all fully-fledged Islamic banks and 14 commercial banks workin...
This paper presents insights into the relationships between Islamic banking, economic growth and financial stability in GCC economies. The paper gives a critique on the impact of Islamic banking in the growth and stability of the economies of Gulf r...
The banking sector plays a vital role in growth-supporting factor for economic growth in the world’s fastest-growing economies like India. Recently, Islamic banking has become an increasingly popular method for alleviating poverty, financial inclusi...
Do Islamic banks contribute to growth of the economy? Evidence from United Arab Emirates (UAE)
Islamic finance has grown rapidly in the recent years particularly in the Middle East and the world. It receives a great attention of bankers and financial scholars due to its stability during financial shocks and crises. The paper uses empirical an...