Corporate Governance, Regulations and Banking Stability in Africa

Elikplimi Komla Agbloyor (), Baah Aye Kusi (), Patience Aseweh Abor () and Collins Ntim
Additional contact information
Elikplimi Komla Agbloyor: University of Ghana Business School
Baah Aye Kusi: University of Education
Patience Aseweh Abor: University of Ghana Business School

Chapter Chapter 19 in The Economics of Banking and Finance in Africa, 2022, pp 605-657 from Palgrave Macmillan

Abstract: Abstract This study examines how country-level corporate governance structures (CLCGS) affect the nexus between financial sector transparency regulations (FSTR) (led by the private and public sectors) and banking stability in Africa. Employing a Prais-Winsten panel data of about 77 banks across 30 African economies between 2006 and 2015, the results show that CLCGSs are crucial in shaping how FSTR led by the private and public sector affect banking stability in Africa. Specifically, we find positive and negative synergies between FSTR (led by the public and private sectors) and CLCGSs on banking stability, respectively. Additionally, the net effect results show that the negative effects of public and private sector-led FSTR on banking stability are suppressed when interacted with CLCGSs. Splitting our sample into economies with strong and weak CLCGSs, we report that FSTR led by the public sector fosters banking stability in economies with strong CLCGSs, while FSTR led by the private sector fosters banking stability in economies with weak CLCGSs in Africa. These findings provide clear indications that building and enhancing CLCGSs can help restrict the reduction effect of private and public sector-led FSTRs on banking stability in Africa.

Keywords: Corporate governance; Banking stability; Regulations; Africa (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-04162-4_19

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031041624

DOI: 10.1007/978-3-031-04162-4_19

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().