Impact of Corporate Governance on Peruvian Banks' Financial Strength

Gand Quintana Aguilar

No 12-2016, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: International evidence has shown how the lack of proper corporate governance in banks increases risk management, thereby reducing their financial strength. This paper addresses how corporate governance in Peruvian banks is related to their financial strength. The measure of corporate governance includes variables such as Board`s compensations, shares concentration, transparency and market discipline. In turn, a measure of financial strength is built, including indicators of capital adequacy, asset quality, management, earnings, and liquidity. Most importantly, our results indicate that banks with higher corporate governance indices exhibit higher financial strength.

Keywords: Corporate Governance; Bank Performance; Government Policy. (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 G34 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2016-05
New Economics Papers: this item is included in nep-ban and nep-cfn
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Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heidwp12-2016

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