With regard to the critical role of banks in economics, bank corporate governance is an important matter. Recent scandals such as the case of Enron and the ensuing passage of the Sarbanes-Oxley Act, recent financial crisis and recent Iranian banking scandal are the major incentives to research in bank corporate governance field. After describing special characteristics of banks, this paper investigates the link between three major corporate governance mechanisms (Ownership Structure, Board of Directors and Audit Quality) and Iranian bank performance. Our results of 78 firm years during 2006 to 2011 using pooled data regression with random effects method show that the corporate governance mechanisms as a whole impact bank performance. Significant shareholders have positive effect on bank performance. Also, segregation of chairman and CEO duties and audit quality are negatively associated with bank performance. However, our results show that there is no meaningfull relationship between size of the board and percent of non-executing managers with bank performance.
Rahimian, N., Mohammadi, H., & Salehirad, M. (2014). The Role of Corporate Governance Mechanisms in Banks’ Performance. Journal of Iranian Accounting Review, 1(1), 97-119.
MLA
Nezamoddin Rahimian; Hamid Mohammadi; Masoume Salehirad. "The Role of Corporate Governance Mechanisms in Banks’ Performance". Journal of Iranian Accounting Review, 1, 1, 2014, 97-119.
HARVARD
Rahimian, N., Mohammadi, H., Salehirad, M. (2014). 'The Role of Corporate Governance Mechanisms in Banks’ Performance', Journal of Iranian Accounting Review, 1(1), pp. 97-119.
VANCOUVER
Rahimian, N., Mohammadi, H., Salehirad, M. The Role of Corporate Governance Mechanisms in Banks’ Performance. Journal of Iranian Accounting Review, 2014; 1(1): 97-119.
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