A Statistical Investigation of Corporate Governance Effects on State-Owned Banks in Bangladesh (2019–2024)


Authors : Faria Mahmud

Volume/Issue : Volume 10 - 2025, Issue 2 - February


Google Scholar : https://tinyurl.com/2m53wf74

Scribd : https://tinyurl.com/v2shb59m

DOI : https://doi.org/10.5281/zenodo.14959399


Abstract : This paper examines the impact of corporate governance on the financial performance of state-owned commercial banks in Bangladesh from 2019 to 2024. The study focuses on key factors such as board size, board independence, and ownership structure, analysing their effects on financial performance metrics like Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). Additionally, the research considers important macroeconomic factors and bank-specific characteristics. Based on a sample of all six state-owned commercial banks in Bangladesh, the study formulates five testable hypotheses. Our findings provide valuable insights for policymakers and regulators, highlighting the importance of strong corporate governance in enhancing the performance of public sector banks.

Keywords : Corporate Governance, Financial Performance, State-Owned Banks, Bangladesh, ROA, ROE, NIM, Panel Data Regression, Fixed Effects, Random Effects, Stata.

References :

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  3. Beasley, M. (2016). Corporate governance in the banking sector: Trends and evidence. Journal of Finance and Corporate Governance, 8(3), 89-112.
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  14. Uddin, M., Chowdhury, R., & Das, T. (2020). Macroeconomic influences on banking efficiency: Evidence from Bangladesh. Journal of Macroeconomics, 65, 23-39.

This paper examines the impact of corporate governance on the financial performance of state-owned commercial banks in Bangladesh from 2019 to 2024. The study focuses on key factors such as board size, board independence, and ownership structure, analysing their effects on financial performance metrics like Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). Additionally, the research considers important macroeconomic factors and bank-specific characteristics. Based on a sample of all six state-owned commercial banks in Bangladesh, the study formulates five testable hypotheses. Our findings provide valuable insights for policymakers and regulators, highlighting the importance of strong corporate governance in enhancing the performance of public sector banks.

Keywords : Corporate Governance, Financial Performance, State-Owned Banks, Bangladesh, ROA, ROE, NIM, Panel Data Regression, Fixed Effects, Random Effects, Stata.

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