The Foreign Equity in Banking Industry and the Effectiveness of Corporate Governance: Essential or a Soap Opera?

Banu Dincer ()
Additional contact information
Banu Dincer: Galatasaray University

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2012, vol. 2, issue 4, 339-352

Abstract: This study investigates the impact of foreign equity and foreign board members on corporate governance mechanisms in banking industry in a developing country. Using a data set of recent period and OLS regression model, the effect of board size and composition on performance is analyzed. The results indicate that the presence of foreign equity and board members forces banks to reorient the corporate strategy and reduce operating and total costs. Foreign board members’ independence appears to play an important role in the corporate orientation and internal cost management. The study could be an example for banks in countries experiencing similar conditions.

Keywords: Ownership Structure; Board Composition; Performance; Corporate Governance (search for similar items in EconPapers)
JEL-codes: M10 M40 M48 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.hrmars.com/admin/pics/1365.pdf (application/pdf)
http://www.hrmars.com/admin/pics/1365.pdf (text/html)

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:hur:ijaraf:v:2:y:2012:i:4:p:339-352

Access Statistics for this article

More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().