The Impact of Corporate Governance on Firm Performance in Banking Industry: A Systematic Literature Review

Abstract

The banking industry operates in a highly regularised environment and experiences a high cyber security risk compared to other industries. Therefore, the firm must ensure compliance and control of risk associated with banking activities through a high standard of good governance practices. Hence, the present article examines the impact of corporate governance implementation on firm performance in the banking industry. The study conducted a systematic literature review on the impact of corporate governance practices and firm performance within the banking industry worldwide. The articles in the study were selected using two leading databases, i.e., Scopus and Web of Science, published between 2007 and 2022. The result shows variations in the relationship between corporate governance and firm performance, which lead towards the need for other variables that consider the culture and geographical influence. The study suggests a holistic assessment of corporate governance practices in banking firms.