Advanced Search
MyIDEAS: Login

The Foreign Equity in Banking Industry and the Effectiveness of Corporate Governance: Essential or a Soap Opera?

Contents:

Author Info

  • Banu Dincer

    ()
    (Galatasaray University)

Registered author(s):

    Abstract

    This study investigates the impact of foreign equity and foreign board members on corporate governance mechanisms in banking industry in a developing country. Using a data set of recent period and OLS regression model, the effect of board size and composition on performance is analyzed. The results indicate that the presence of foreign equity and board members forces banks to reorient the corporate strategy and reduce operating and total costs. Foreign board members’ independence appears to play an important role in the corporate orientation and internal cost management. The study could be an example for banks in countries experiencing similar conditions.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.hrmars.com/admin/pics/1365.pdf
    Download Restriction: no

    File URL: http://www.hrmars.com/admin/pics/1365.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences in its journal International Journal of Academic Research in Accounting, Finance and Management Sciences.

    Volume (Year): 2 (2012)
    Issue (Month): 4 (October)
    Pages: 339-352

    as in new window
    Handle: RePEc:hur:ijaraf:v:2:y:2012:i:4:p:339-352

    Contact details of provider:
    Web page: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal

    Related research

    Keywords: Ownership Structure; Board Composition; Performance; Corporate Governance;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Okten, Cagla & Arin, K. Peren, 2006. "The Effects of Privatization on Efficiency: How Does Privatization Work?," World Development, Elsevier, vol. 34(9), pages 1537-1556, September.
    2. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May.
    3. Michael C. Jensen, 1994. "The Modern Industrial Revolution, Exit, And The Failure Of Internal Control Systems," Journal of Applied Corporate Finance, Morgan Stanley, vol. 6(4), pages 4-23.
    4. Hakan Orbay & B. Burcin Yurtoglu, 2006. "The Impact of Corporate Governance Structures on the Corporate Investment Performance in Turkey," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(4), pages 349-363, 07.
    5. Doidge, Craig & Andrew Karolyi, G. & Stulz, Rene M., 2007. "Why do countries matter so much for corporate governance?," Journal of Financial Economics, Elsevier, vol. 86(1), pages 1-39, October.
    6. Gupta, Atul & Misra, Lalatendu, 2002. "Regulatory learning in failed thrift auctions," Journal of Banking & Finance, Elsevier, vol. 26(4), pages 651-669, April.
    7. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
    8. Jayati Sarkar & Subrata Sarkar, 2000. "Large Shareholder Activism in Corporate Governance in Developing Countries: Evidence from India," International Review of Finance, International Review of Finance Ltd., vol. 1(3), pages 161-194.
    9. Khalid, Ahmed M. & Hanif, Muhammad N., 2005. "Corporate Governance for Banks in Pakistan: Recent Developments and Regional Comparisons," MPRA Paper 9255, University Library of Munich, Germany.
    10. McConnell, John J. & Servaes, Henri, 1990. "Additional evidence on equity ownership and corporate value," Journal of Financial Economics, Elsevier, vol. 27(2), pages 595-612, October.
    11. Rodolfo Apreda, 2001. "Corporate Governance in Argentina: the outcome of economic freedom (1991-2000)," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(4), pages 298-310, October.
    12. Claessens, Stijn & Demirguc-Kunt, Asl[iota] & Huizinga, Harry, 2001. "How does foreign entry affect domestic banking markets?," Journal of Banking & Finance, Elsevier, vol. 25(5), pages 891-911, May.
    13. Jonathan R. Macey & Maureen O'Hara, 2003. "The corporate governance of banks," Economic Policy Review, Federal Reserve Bank of New York, issue Apr, pages 91-107.
    14. Shleifer, Andrei & Vishny, Robert W, 1997. " A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-83, June.
    15. Burcin Yurtoglu, 2003. "Corporate Governance and Implications for Minority Shareholders in Turkey," Working Papers 2003/7, Turkish Economic Association.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:2:y:2012:i:4:p:339-352. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hassan Danial Aslam).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.