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NPL and Corporate Governance: A Case of Banking Sector of Pakistan

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Listed:
  • Muhammad Ishfaq Ahmad
  • Wang Guohui
  • Mudassar Hassan
  • Muhammad Akram Naseem
  • Ramiz ur Rehman

Abstract

This study examines the role of corporate governance on the non-performing loans of the banking sector of Pakistan. The study also examines how the government type either democratic government or dictator government influence the banking industry in nonperforming loans context. This study sample includes all types of banks i-e State owned banks, Private Banks and foreign private banks operating in the Pakistan. This research utilizes the secondary data for the time span of 1996 to 2007. Method of the analysis used for the data is Regression. The study reveals that corporate governance does matter significantly for the nonperforming loans of the banks generally. Specifically board size has positive effect on the non-performing loans while ownership concentration and board independence effect negatively. Furthermore the study explores that during dictator regimes non-performing loans decrease significantly.Â

Suggested Citation

  • Muhammad Ishfaq Ahmad & Wang Guohui & Mudassar Hassan & Muhammad Akram Naseem & Ramiz ur Rehman, 2016. "NPL and Corporate Governance: A Case of Banking Sector of Pakistan," Accounting and Finance Research, Sciedu Press, vol. 5(2), pages 1-32, May.
    • Handle: RePEc:jfr:afr111:v:5:y:2016:i:2:p:32
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    References listed on IDEAS

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    3. Emmanuel Debrah & Alexander Preko & Seth Ampadu, 2022. "Examining the effect of board size on credit risk of universal banks in Ghana," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2157100-215, December.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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