scispace - formally typeset
Search or ask a question

How corporate governance impact on power market of banks? 


Best insight from top research papers

Corporate governance plays a crucial role in influencing the market power of banks. Research from Pakistan, Nepal, Indonesia, India, and Russia highlights various aspects of this relationship. In Pakistan, director compensation and audit meetings positively correlate with market capitalization. Nepalese commercial banks show improved performance with better corporate governance dimensions, especially social awareness. Indonesian banks with higher self-assessment corporate governance rankings exhibit greater market power. Indian banks demonstrate that board attendance positively impacts financial performance, while board expertise and CEO duality have negative effects. Russian banks reveal that the presence of women on the board negatively affects valuation, while board meetings and audit committees positively impact net asset value. These findings collectively emphasize the significant impact of corporate governance practices on the market power of banks.

Answers from top 5 papers

More filters
Papers (5)Insight
Corporate governance factors like women on the board, number of directors, and audit committees influence banks' value positively in Russia, impacting their net asset value significantly.
Not addressed in the paper.
Not addressed in the paper.
Corporate governance quality influences a bank's market power, with better governance linked to higher market power in Indonesian listed banks during 2013-2017.
Corporate governance impacts the performance of commercial banks by enhancing discipline, transparency, accountability, and social awareness, ultimately influencing their overall market confidence and operational efficiency.

Related Questions

Howdivident policy impact on power market of banks5 answersBank dividend policy and market power are intertwined factors in the banking sector. Research indicates that market power, as measured by the Lerner Index, inversely affects dividend payment decisions in commercial banks, although this impact is statistically insignificant. Furthermore, the relationship between market power and bank lending reveals a U-shaped pattern, with countries having stringent regulatory policies exhibiting higher thresholds of market power compared to those with low regulatory policies. Additionally, the impact of bank market power on monetary policy transmission to borrowers is significant, comparable to the effect of bank capital regulation, especially when the federal funds rate drops below a certain threshold. These findings highlight the complex interplay between dividend policies and market power dynamics in the banking industry.
How does corporate governance affect bank performance?5 answersCorporate governance has a significant impact on bank performance. The size of the board and audit committees positively influence profitability and productivity, but decrease technical efficiency. The number of board meetings and audit committee meetings also contribute to better performance and lower risk. Additionally, corporate governance mechanisms differentiate banks' practices and are considered essential for financial sustainability. Furthermore, corporate governance positively moderates the relationship between bank ownership and business performance, indicating its favorable effect on company performance. Moreover, banks with stronger corporate governance practices, such as higher shareholding of institutional investors and more independent directors, offer more innovative financial services, leading to higher profitability and value. Overall, effective corporate governance plays a crucial role in enhancing bank performance and financial stability.
What are the benefits of corporate governance in banking sector?4 answersCorporate governance in the banking sector provides several benefits. Firstly, it enhances financial innovation and performance. Banks with strong corporate governance practices, such as a higher number of directors with finance or accounting backgrounds, higher attendance rates of directors, and a higher ratio of independent directors, are more likely to provide cutting-edge financial services and experience increased profitability and value. Secondly, corporate governance influences risk-taking behavior in banks. CEOs who started their careers during recessions tend to take less risk and implement conservative bank policies, resulting in superior performance during financial crises. Thirdly, board structure, audit committee size, and ownership structure significantly impact bank performance. Larger boards and audit committees improve profitability and productivity, while gender diversity indicators may deteriorate performance. Ownership structure improves earnings per share and technical efficiency. Finally, good corporate governance practices, such as board size, independence, and leverage, positively affect bank performance, leading to increased return on assets.
What are the benefits of implementing corporate governance in the banking sector?5 answersImplementing corporate governance in the banking sector has several benefits. It helps to specify the distribution of roles, responsibilities, and resources among stakeholders, leading to a more stable and sustainable financial system. Good corporate governance mechanisms, such as transparency, privacy, legislations, and clarity of procedures, enhance the efficiency of banks and balance the conflict of interest among stakeholders. Effective corporate governance mechanisms also protect the rights of stakeholders and ensure the reliability and relevance of financial information, thereby improving the quality of financial reporting in the banking industry. Furthermore, strong governance practices in banks are essential for achieving and maintaining a higher level of public confidence in the banking system. Additionally, implementing corporate governance variables, such as having a large board with expertise, non-executive board members, and separation of CEO-board chair roles, can improve the quality of bank loan portfolios. Overall, corporate governance in the banking sector leads to better financial outcomes, stability, accountability, and transparency.
WHAT IS Power finance corporation?5 answersPower finance corporation refers to the practice of using sophisticated financial engineering techniques in the power industry to enhance corporate earnings and shareholder value. Project sponsors in the competitive power market blend power purchase agreements (PPAs) with tolling and merchant arrangements on the equity side, while on the debt side, they utilize highly structured financings involving miniperms, gencos, bonds, and project lease structures. This approach allows for innovative combinations of financing methods to support the development and operation of generating plants.Tolling agreements are a specific type of contract used in the North American power industry, where a company like Powerex Corp. converts gas into electricity through short-term contracts with generators. Powerex may seek longer-term, more complex tolling contracts to further its growth objectives.
How does corporate governance impact financial performance?5 answersCorporate governance has a significant impact on financial performance. The indicators of corporate governance, such as board role and composition, transparency and disclosure, audit and compliance, and risk management, positively influence the financial performance of financial institutions. Establishing and improving corporate governance mechanisms is crucial for enhancing the market competitiveness and preventing financial crises. Prior to the financial crisis of 2008, there was a positive association between corporate governance and firm performance, as measured by Tobin's q. Higher corporate governance also led to an increase in cash dividends. However, during the financial crisis, the relationship between corporate governance and firm performance varied. Better-governed companies had a higher return on assets, but this was not observed when measured by Tobin's q. Additionally, companies with better corporate governance paid dividends less generously during the crisis. Overall, better corporate governance practices and disclosure are believed to lead to superior financial performance.

See what other people are reading

What are the role of state actors?
5 answers
State actors play crucial roles in various domains such as agriculture policy, human rights promotion, economic development, cybersecurity, and cyber warfare. They are key players in addressing pressing issues like unhealthy diets, climate change, promoting and implementing human rights, intervening in the economy for development, and ensuring cybersecurity across borders. In cyberspace, state actors face challenges due to the absence of clear attribution and the offense-dominant nature of cyber warfare. Additionally, non-state actors can also influence state actions by transferring resources and knowledge, albeit with risks of agency slacking. State actors need to identify policy spaces, set clear priorities, and adopt holistic approaches to effectively address contemporary challenges and drive positive change.
What is the relationship between taxation and a company's financial performance?
5 answers
Taxation has a significant impact on a company's financial performance. Studies from Tunisia, China, Nigeria,, andreveal various insights. In Tunisia, corporate income tax and tax incentives affect financial performance, suggesting the need for tax policy adjustments to attract investors. In China, direct and indirect tax incentives influence corporate social responsibility through financial performance. Nigerian studies highlight the negative impact of company income tax on financial performance, emphasizing the importance of tax exemptions. Additionally, financial performance in Nigeria is shown to affect companies' income tax, with firm size playing a moderating role. Overall, these findings underscore the intricate relationship between taxation policies, financial performance, and corporate outcomes across different countries.
How effective are environmental taxation policies in promoting sustainable development and reducing carbon emissions in India and OECD countries?
4 answers
Environmental taxation policies have shown varying effectiveness in promoting sustainable development and reducing carbon emissions in OECD countries. Studies indicate that environmental taxes, particularly on energy and pollution, can reduce CO2 emissions once specific threshold levels are reached. Additionally, eco-innovation through environmental patents plays a crucial role in boosting environmental productivity growth and technological advancements. However, the impact of environmental taxation on sustainable growth is limited, with positive effects mainly observed on the catch-up term rather than on technological frontier advancements. It is suggested that countries should implement specific environmental taxes and green R&D policies to facilitate environmental sustainability. Policymakers should consider tailoring environmental policies to the unique features of each country or region to maximize their effectiveness in reducing carbon emissions and promoting sustainable development.
How is generative AI being utilized in the field healthcare management?
5 answers
Generative AI (GAI) is significantly impacting healthcare management across various dimensions, from enhancing patient care to revolutionizing medical education and research. In telemedicine, GAI, particularly through the use of Generative Adversarial Networks (GANs), has been employed to create synthetic datasets that mirror real patient data for cancer pain management, thereby facilitating remote clinical evaluations and predicting patient needs for telemedicine visits. This application underscores GAI's potential in generating realistic, anonymized patient data, balancing the need for data-driven insights with privacy concerns. Large Language Models (LLMs) like ChatGPT, a subset of GAI, offer opportunities for improving patient outcomes, engaging patients more effectively, and enhancing healthcare delivery while also addressing challenges such as clinical safety and data privacy. These models can support healthcare systems in developing strategies for integrating GAI, focusing on infrastructure investment, workforce education, and establishing accountability mechanisms. GAI's role extends to medical imaging and drug development, where it aids in creating virtual models for treatment planning and simulating drug effects, thereby accelerating the discovery and optimization of therapeutic interventions. For instance, in spinal cord research, GAI has been utilized to design new drugs and optimize spinal stimulation protocols, demonstrating its versatility in clinical care and research applications. In education, GAI technologies, particularly AI-based image generation, are being explored for their potential to enhance learning experiences in healthcare. These technologies can support visual learning, stimulate critical analysis, and foster emotional intelligence among nursing students, thereby contributing to the development of clinical judgment. Moreover, GAI is instrumental in medical imaging analysis, where it enables automatic visual explanations of AI model predictions. This capability not only increases trust in AI-based diagnostics but also stimulates novel scientific discoveries by identifying previously unknown signals in medical images. Collectively, these applications illustrate GAI's transformative potential in healthcare management, spanning patient care, education, and research.
Can structured introductions improve conference networking?
5 answers
Structured introductions can indeed enhance conference networking by facilitating connections between nodes in a network. Introductions play a crucial role in reducing the cost of creating connections that share a common node, ultimately promoting network formation. These introductions create opportunities for nodes to establish new connections more efficiently, leading to the formation of stable networks with minimal clustering and the potential for nodes to exploit structural holes for intermediation rents. By leveraging introductions effectively, conference participants can bridge otherwise unconnected parts of the network, enhancing networking opportunities and maximizing the benefits of connecting with diverse individuals at conferences.
What are the pitfalls of public private partnership for infrastructure?
5 answers
Public-private partnerships (PPPs) in infrastructure projects face several pitfalls. These include challenges in operational risk management, obstacles hindering PPP project development, and the need for effective management of state investments in PPPs. PPPs may struggle with inadequate consideration of operational risk factors, lack of systematic risk factor lists, and underdeveloped risk management strategies. Additionally, barriers identified by PPP practitioners and professionals can impede project success, requiring effective mitigation strategies. Moreover, the management of PPPs in sports infrastructure projects highlights the importance of a stable regulatory framework, strategic public investment priorities, and clear selection criteria for successful partnerships. Addressing these pitfalls through improved risk assessment, regulatory frameworks, and strategic planning can enhance the effectiveness of PPPs in infrastructure development.
What is urban green infrastructure?
4 answers
Urban green infrastructure (UGI) refers to a system of natural components within urban areas that serve various functions such as economic, ecological, safety, aesthetic, and recreational aspects. It plays a crucial role in enhancing the quality of the environment, promoting sustainability, and increasing the resilience of cities through nature-based solutions (NBS). The development of UGI contributes to the flow of benefits from ecosystem services, aligning with the principles of a green economy and sustainable city development. Evaluating UGI sites involves assessing indicators like naturalness and functioning, which are essential for urban sustainability and ecosystem balance. By incorporating green infrastructure into urban planning strategies and management systems, cities can create favorable living spaces, improve environmental safety, enhance social attractiveness, and boost economic efficiency.
Will EU CSRD change companies approach towards CSR?
4 answers
The EU Corporate Sustainable Reporting Directive (CSRD) is expected to significantly impact companies' approaches towards Corporate Social Responsibility (CSR). The CSRD aims to enhance the quality of sustainability reporting, promote sustainability-oriented corporate governance, and align reporting standards across EU member states. However, studies suggest that the introduction of such directives may lead to mixed outcomes, affecting the credibility and comparability of CSR reports. The CSRD will require companies to focus on quantifying emissions and consider the broader impact of their activities, emphasizing the importance of accurate reporting and decision-making for sustainability. Overall, the CSRD is expected to drive companies towards more comprehensive and transparent CSR practices, fostering a stronger focus on sustainability and environmental responsibility.
Will EU CSRD change companies approach from profit towards CSR?
5 answers
The EU Corporate Sustainable Reporting Directive (CSRD) aims to shift companies towards a more sustainable approach by mandating comprehensive sustainability reporting. Existing research highlights that companies are increasingly adopting CSR policies voluntarily, indicating a proactive shift towards sustainability. However, the current scenario in Poland shows limited attention to CSR norms and reporting, suggesting room for improvement and the need for continued education in this field. The implementation of the CSRD is expected to bring about significant changes by introducing mandatory and uniform reporting standards based on double materiality, external audits, and more stringent requirements, ultimately fostering a more sustainability-oriented corporate governance approach. Therefore, the CSRD is likely to influence companies to prioritize CSR alongside financial considerations, steering them towards a more balanced profit and CSR approach.
How does the price of Bitcoin correlate with climate policy initiatives?
5 answers
The price of Bitcoin correlates with climate policy initiatives due to its significant energy consumption and carbon footprint. Bitcoin's market capitalization growth is linked to its electricity consumption, potentially reaching over 100 TWh by 2021 and emitting over 5 gigatons of carbon by 2100. The art market's shift towards sustainable consensus protocols due to carbon emissions from NFT transactions highlights the pressure on blockchain technologies to reduce environmental impact. Long memory in Bitcoin's energy consumption data suggests the need for permanent policies like using alternate energy sources or transitioning to more eco-friendly consensus protocols. Governments are urged to balance regulations and incentives to ensure that crypto mining aligns with international climate goals, emphasizing clean energy use and energy efficiency in mining operations.
How does the promotion of cycling as a mode of transportation affect the overall development of a city?
5 answers
The promotion of cycling as a mode of transportation significantly impacts the overall development of a city. Encouraging cycling helps reduce pollution, noise, and promotes a healthy lifestyle. It is crucial for achieving environmental targets like the 1.5-degree goal of the Paris Climate Agreement. Developing cycling infrastructure, such as dedicated lanes and safe paths, is essential to attract more cyclists and ensure their safety. Factors like traffic planning measures, urban design, and subjective safety influence the effectiveness of promoting cycling in urban areas. By prioritizing active mobility, cities can address challenges like traffic congestion, road safety, and air pollution while promoting sustainable and efficient modes of transportation.