Effect Of Corporate Governance On Bank Performance

Abstract

The relationship between corporate governance and bank performance is a critical area of study within the field of finance and management. This paper aims to provide a comprehensive analysis of the effect of corporate governance mechanisms on the performance of banks. Drawing upon a review of existing literature and empirical evidence, the paper examines various dimensions of corporate governance, including board composition, executive compensation, and risk management practices, and their impact on key performance indicators such as profitability, asset quality, and stability. Through the use of quantitative research methods, including regression analysis and event studies, the paper seeks to empirically demonstrate the linkages between corporate governance practices and bank performance outcomes. By shedding light on these relationships, the paper contributes to a deeper understanding of how governance mechanisms can influence the financial health and stability of banks, with implications for regulators, policymakers, and practitioners in the banking industry.