Advanced Search
MyIDEAS: Login to save this article or follow this journal

Corporate Governance and Bank Performance: Evidence from Macedonia

Contents:

Author Info

  • Filip Fidanoski

    ()
    (Skopje, Republic of Macedonia)

  • Vesna Mateska

    (Skopje, Republic of Macedonia)

  • Kiril Simeonovski

    (Skopje, Republic of Macedonia)

Registered author(s):

    Abstract

    The role of banks is integral and significant to the economic development and private initiative of any country. Therefore, we can read different and opposing studies in economic literature about various bank corporate governance regimes and issues. Given the renewed attention on the corporate governance in banks with the global financial crises, this paper investigates the relevance of board size, board composition and CEO qualities in the Macedonian banks and their performance. Thus, the following paragraphs will elaborate on the development of hypotheses to test whether good corporate governance structure can contribute towards higher banks performance measured by Return on assets (ROA), Return on equity (ROE), Cost-Income ratio and Capital adequacy ratio (CAR). We find that board size is only positively related to the bank’s profitability measures by ROA. Further, the research indicates negative association between board independence and ROA and ROE. Also, the results stress that banks in Macedonia which is managed by powerful CEOs that hold this position for a longer period are more profitable than those with CEOs serving their first four-years tenure. In addition, it is important to highlight that our research findings and insights is different and more important than some other studies, both practical and theoretical, as the primary object of study is commercial banks from insufficiently explored financial system and developing economy.

    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.ien.bg.ac.rs/index.php/en/2014/1-2
    Download Restriction: no

    Bibliographic Info

    Article provided by Institute of Economic Sciences in its journal Economic Analysis.

    Volume (Year): 47 (2014)
    Issue (Month): 1-2 ()
    Pages: 76-99

    as in new window
    Handle: RePEc:ibg:eajour:v:47:y:2014:i:1-2:p:76-99

    Contact details of provider:
    Postal: 12 Zmaj Jovina St, 11000 Belgrade, Serbia
    Phone: +381 11 2622 357, 2623-055
    Fax: +381 11 2181 471
    Email:
    Web page: http://www.ien.bg.ac.rs
    More information through EDIRC

    Related research

    Keywords: bank performance; board composition; board size; corporate governance; diversity;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    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:ibg:eajour:v:47:y:2014:i:1-2:p:76-99. 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: (Zorica Bozic).

    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.