IDEAS home Printed from https://ideas.repec.org/a/ids/ijrevm/v3y2009i1p102-118.html
   My bibliography  Save this article

An analysis of the impacts of corporate governance on the financial performance of the Chinese banks

Author

Listed:
  • Ying Shu Bai
  • Doowoo Nam

Abstract

This study examines the cross-sectional relation between corporate governance and corporate performance of the sample of 12 Chinese banks over the 2003-2006 periods. Taking other influential factors into account, such as the capital adequacy ratio and the firm size, this study investigates the influence of state ownership and outside directors on bank performance, measured by return on equity and non-performing loans ratio. The two ratios are chosen to evaluate the financial performance of a bank in terms of its profitability and the soundness of its operating revenue management. The results suggest that there is a strong relationship between corporate governance and bank performance. More specifically, the fraction of shares owned by the state has significant and negative effects on bank performance and the proportion of outside directors on the board of directors has positive effects on bank performance.

Suggested Citation

  • Ying Shu Bai & Doowoo Nam, 2009. "An analysis of the impacts of corporate governance on the financial performance of the Chinese banks," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 3(1), pages 102-118.
    • Handle: RePEc:ids:ijrevm:v:3:y:2009:i:1:p:102-118
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=23140
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Tinggi & Abu Hassan bin Md Isa & Shaharudin Jakpar & Sharifah Sabrina Syed Ali & Salawati Sahari, 2014. "Independent Directors, Moving Forward in Exercising Dominant Role: A Case of Malaysian Firms," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(5), pages 46-57, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijrevm:v:3:y:2009:i:1:p:102-118. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=99 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.