Research on the Influence of Corporate Governance Structure on the Performance of Nepal Commercial Banks

Abstract

The current researches portray the corporate governance’s variables on non-performing loan of commercial bank in Nepal. The total assists of the bank depend on the dependent variables of are non-performing loan and nonperforming loan to total assets while the independent variables includes i.e. board size, independent directors, audit committee member, foreign ownership, domestic ownership, CEO duality, bank age, female director, board meeting and bank size. So the study conducted in current research is based on the data obtained from eighteen commercial banks in Nepal dated: 2010/2011to 2015/2016, leading to a total of 108 observations. Some of the data were obtained from websites and annual reports of the Nepalese Banks. The data were analysed through regression model to examine the importance of corporate governance variables on non-performing loan. Some of the result has positive correlation with the ratio of non-performance loan which shows that diversified the board, director of board, audit committee higher will be the ratio of nonperforming loan and vice versa, while the result has negative impact on the presence of foreign ownership which are otherwise explain the presence of foreign of ownership would reduce the bank proficiency. Furthermore the presence of domestic ownership has increased the efficiency of the corporate banking sectors. The presence of dual CEO is also negative relation with the performance of the bank. Similarly the age of bank, presence of female director, number of board meeting and bank size has positive relation with the said topic. Citation: Gupta AK, Wei GX (2018) Research on the Influence of Corporate Governance Structure on the Performance of Nepal Commercial Banks. J Glob Econ 6: 316. doi: 10.4172/2375-4389.1000316