Corporate Governance and its Effects on the Financial Performance of Commercial Banks in Nepal

International Journal of Economics and Management Pub Date : 2023-10-10 DOI:10.3126/jem.v3i1.59189

Maheshwar Lal Hada

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Abstract

This current study aims to explore the impact of corporate governance on the financial performance of commercial banks in Nepal. Although there were many researches made on the topic “Impact of Corporate Governance on Financial Performance,” However there is only a handful of research found in respect of commercial banks in Nepal. This study tried to fill the gap by studying exclusively in the banking industry of Nepal. The financial performance is measured through Return on assets (ROA) as the dependent variable, and corporate government variables are measured through the percentage of foreign directors in the board, board size, board independence, and board diligence as independent variables. Panel data analysis was used for the study covering the period from 2016/017 to 2020/021 using both descriptive statistic, correlation, multiple regression and t-test to examine the governance practices and their effect in the financial performance of commercial banks in Nepal. The empirical results demonstrated that board diligence (DB) has a positive significant impact on ROA. The result also indicates that there is an insignificant impact of other variables (FD, BI, BS) on ROA of commercial banks in Nepal.

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尼泊尔商业银行公司治理及其对财务绩效的影响

本研究旨在探讨公司治理对尼泊尔商业银行财务绩效的影响。虽然有很多关于“公司治理对财务绩效的影响”这一主题的研究，但是在尼泊尔商业银行方面的研究却很少。本研究试图通过专门研究尼泊尔银行业来填补这一空白。财务绩效通过资产收益率(ROA)作为因变量来衡量，公司治理变量通过董事会中外国董事的比例、董事会规模、董事会独立性和董事会勤勉度作为自变量来衡量。面板数据分析用于覆盖2016/017至2020/021期间的研究，使用描述性统计，相关性，多元回归和t检验来检查尼泊尔商业银行的治理实践及其对财务绩效的影响。实证结果表明，董事会尽职(DB)对ROA有显著的正向影响。结果还表明，其他变量(FD、BI、BS)对尼泊尔商业银行ROA的影响不显著。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Economics and Management Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.80

自引率

0.00%

发文量

期刊介绍： The journal focuses on economics and management issues. The main subjects for economics cover national macroeconomic issues, international economic issues, interactions of national and regional economies, microeconomics and macroeconomics policies. The journal also considers thought-leading substantive research in the finance discipline. The main subjects for management include management decisions, Small Medium Enterprises (SME) practices, corporate social policies, digital marketing strategies and strategic management. The journal emphasises empirical studies with practical applications; examinations of theoretical and methodological developments. The journal is committed to publishing the high quality articles from economics and management perspectives. It is a triannual journal published in April, August and December and all articles submitted are in English. IJEM follows a double-blind peer-review process, whereby authors do not know reviewers and vice versa. Peer review is fundamental to the scientific publication process and the dissemination of sound science.