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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- Beasley, M. (2016). Corporate governance in the banking sector: Trends and evidence. Journal of Finance and Corporate Governance, 8(3), 89-112.
- Chong, K. & colleagues. (2020). The impact of board independence on bank performance: A panel data analysis. Journal of Financial Studies, 27(4), 210-232.
- Chowdhury, F., & Ali, S. (2019). Modeling banking performance: A panel data approach for South Asian banks. Economic Modelling, 81, 240-253.
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- Karim, R. (2019). Ownership concentration and bank efficiency in state-run banks. Asian Journal of Economics and Finance, 8(2), 102-121.
- Rahman, A. (2020). Corporate governance practices and performance in the banking sector of Bangladesh. Journal of Business Ethics, 162, 123-138.
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- 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.