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Does corporate governance really matter for bank efficiency? Evidence from ASEAN countries

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  • Thi Lam Anh Nguyen

    (Banking Academy
    Centre for Applied Economics and Business Research)

  • Xuan Vinh Vo

    (University of Economics Ho Chi Minh City and CFVG Ho Chi Minh City, University of Economics Ho Chi Minh City)

Abstract

This paper examines the impacts of corporate governance on the efficiency of ASEAN banks from 2007 to 2014. The bank efficiency levels are estimated using the SFA model of Kumbhakar et al. (J Prod Anal 41:321–37, https://doi.org/10.1007/s11123-012-0303-1 , 2014). The impacts of various corporate governance aspects on bank efficiency are assessed using the Dynamic system GMM model. The results indicate that government-owned banks are more cost-efficient, but not more profit efficient than both foreign and private banks. Banks with larger boards are more cost-efficient in both the long term and short term, but only more profit efficient in the short term. In addition, foreign ownership, board independence, and CEO duality show no significant impact on bank efficiency levels.

Suggested Citation

  • Thi Lam Anh Nguyen & Xuan Vinh Vo, 2020. "Does corporate governance really matter for bank efficiency? Evidence from ASEAN countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 681-706, December.
    • Handle: RePEc:spr:eurase:v:10:y:2020:i:4:d:10.1007_s40822-020-00151-4
    DOI: 10.1007/s40822-020-00151-4
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    More about this item

    Keywords

    Bank efficiency; Ownership structure; Board structure; ASEAN;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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