Boards of directors and bank performance in United Arab Emirates

Jun Saito ()

No 583, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This study presents an empirical analysis about corporate governance of financial institutions in United Arab Emirates (UAE). The purpose of this research is to analyze the influence of the structure of board of directors on the performance of these institutions. To examine the effect of control exerted by particular families on bank management, we estimated models where the dependent variable is return on assets (ROA) and return on equity (ROE), independent variables are board of directors variables, and control variables are bank management variables. Our results show that the control of corporate governance by a ruler's family within a board of directors has a positive effect on bank profitability. Our results indicate that control by a ruler's family through a bank's board of directors compensates for the inadequacy of UAE's corporate governance system.

Keywords: Banks; Corporate governance; Board of directors; Bank performance; GCC banks (search for similar items in EconPapers)
JEL-codes: D22 G34 (search for similar items in EconPapers)
Date: 2016-03-01
New Economics Papers: this item is included in nep-ara, nep-cfn and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 583. 2016-03-01

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