9th International Science Congress (ISC-2019).  International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Do Board Independence Carry Value? A Case Study of Pakistani Banks

Author Affiliations

  • 1 School of Banking and Finance, GC University Faisalabad, PAKISTAN

Res. J. Management Sci., Volume 2, Issue (5), Pages 1-5, May,6 (2013)

Abstract

This study examines the influence of board independence on baking performance of Pakistan over the period of 2007 to 2011. This particular study is conducted by employing publically available data from the websites of Karachi stock exchange and Central bank of Pakistan. Descriptive statistics, correlation and regression analysis are used as most appropriate techniques to find out the results. Outcomes of study revealed a positive impact of board size and independent board members on return on assets and earnings per share. On the basis of outcomes it is suggested that banks with independent boards will perform better than banks having dependent boards.

References

  1. Butt S.A., Corporate Governance: An introductory book for Pakistan. Lahore, Pakistan: Azeem Academy, (2011)
  2. Choi J.J., Park S.W. and Yoo S.S., The value of outside directors: Evidence from Corporate Governance reform in Korea. Journal of Financial and Quantitative analysis, 42(4), 941-962 (2007)
  3. Adams R.B. and Mehran H., Corporate Performance, board structure, and their determinants in the banking industry (Research Report No. 330). United States of America: Federal reserve bank of New York, (2011)
  4. Khan A. and Dr. Awan S.H., Effect of board composition on firm performance: A case study of Pakistani listed companies. Interdisciplinary Journal of Contemporary Research in Business, 3(10), 853-863 (2012)
  5. Kutubi S. S., Board of director’s size, independence and performance: An analysis of private commercial banks in Bangladeshi. World Journal of Social Sciences, 1(4), 159-178 (2011)
  6. Bhagat S. and Black B., Board independence and long term firm performance. Retrieved from http://web.law.columbia.edu/law-economic-studies/ working-papers /working-papers-author#8376 (2000)
  7. Rashid A., Zoysa D.A., Lodh S. and Rudkin K., Board composition and firm performance: Evidence from Bangladesh. Australasian Accounting Business and Finance Journal, 4(1), 76-95 (2010)
  8. Duchin R., Matsusaka G.J. and Ozbas O., When Are Outside Directors Effective? USC Center in Law, Economics and Organization, Research Paper No. C07-13, Retrieved from http://ssrn.com/abstract=1026488 (2008)
  9. Koerniadi H. and Tourani-Rad A., Does board independence matter? Evidence from New Zealand, Australasian Accounting Business and Finance Journal, 6(2), 3-18 (2012)
  10. Gani L. and Jermias J., Investigating the effect of board independence on performance Across different strategies, The International Journal of Accounting, 41, 295-314 (2006)
  11. Lwu-Egwuonwu R.C., Some empirical literature evidence on the effects of independent directors on firm performance, Journal of Economics and International Finance, 2(9), 190-198 (2010)
  12. Ararat M., Orbay H. and Yurtoglu B.B., The Effects of Board Independence in Controlled Firms: Evidence from Turkey, Retrieved from http://www.researchgate.net /publication/228122810. (2012)
  13. Mishra K.A., Harsha G.S., Anand S. and Dhruva N.R., Analyzing Soundness in Indian Banking: A CAMEL Approach, Research Journal of Management Sciences, 1(3), 9-14 (2012)
  14. Uadiale O.M., The impact of board structure on corporate financial performance in Nigeria, International Journal of Business and Management, 5(10), 155-166 (2010)
  15. Arosa B., Iturralde T. and Maseda, A., Board of directors and firm performance in Spanish non-listed family firms. Retrieved from Google scholar, (2012)
  16. Ponnu C.H. and Karthigeyan R.M., Board independence and corporate performance: Evidence from Malaysia. African Journal of Business Management, 4(6), 858-868 (2010)
  17. Mishra K.A., Gadhia J.N., Kar B.P., Patra B. and Anand S., Are private sector banks more sound and efficient than public sector banks? Assessments based on Camel and Data Envelopment analysis approaches. Research Journal Recent Sciences, 2(4), 28-35 (2013)