Corporate governance and performance of commercial banks in Pakistan

Ahmad, Shabbir (2006). Corporate governance and performance of commercial banks in Pakistan. In: 23èmes journées internationales d’économie monétaire et bancaire, Villeneuve-d'Ascq, France, (1-21). 22-23 June, 2006.

Author Ahmad, Shabbir
Title of paper Corporate governance and performance of commercial banks in Pakistan
Language of Title eng
Conference name 23èmes journées internationales d’économie monétaire et bancaire
Translated conference name 23rd International Symposium on Money, Banking and Finance
Conference location Villeneuve-d'Ascq, France
Conference dates 22-23 June, 2006
Language of Proceedings Title fre
eng
Place of Publication Villeneuve-d'Ascq, France
Publisher l’Université Charles de Gaulle - Lille 3
Publication Year 2006
Sub-type Fully published paper
Open Access Status
Start page 1
End page 21
Total pages 21
Language fre
eng
Formatted Abstract/Summary
The study investigates the impact of corporate governance on banking performance in Pakistan. Efficiency of banks is measured using Cobb-Douglas cost function for the year 2000-2002. It is evident from the results that on average, overall efficiency remains about 82 percent throughout the period of analysis. However, it is observed that public ownership show lowest efficiency among all the groups i.e., 74 percent on average, which emphasizes on a competitive environment in the banking sector that may improve the efficiency of these institutions. Similarly, market share also affects the performance of banks negatively, suggesting that banks in a less competitive environment might feel less pressure to control their costs. Moreover, introduction of governance variables such as sound management and concentration have significant impact on banking efficiency. This poses a question to policy makers to restructure of banking sector that may play a significant role to impose a sound governance device, hence improve the efficiency of banks.
Keyword Banking
Efficiency
Corporate governance
Pakistan
Q-Index Code EX
Q-Index Status Provisional Code
Institutional Status Non-UQ

 
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Created: Wed, 07 May 2014, 15:02:16 EST by Michelle Rowland on behalf of School of Human Movement and Nutrition Sciences