Corporate Governance, Cash Flows, and Bank Performance: Developed and Developing Countries

Fatima Faruqi, Tanveer Ahsan (), Sultan Sikandar Mirza and Zia-ur-Rehman Rao
Additional contact information
Fatima Faruqi: Air University, Pakistan
Tanveer Ahsan: Rennes School of Business, France
Sultan Sikandar Mirza: Zhejiang Gongshang University, China
Zia-ur-Rehman Rao: Forman Christian College, Pakistan

Multinational Finance Journal, 2019, vol. 23, issue 1-2, 1-36

Abstract: The purpose of the study is to investigate the impact of corporate governance on bank performance and the mediating role of cash flows between corporate governance and bank performance in developed and developing countries. The study collects data for 2006-2015 for 30 commercial banks operating in five countries (Bangladesh, Malaysia, Pakistan, Australia, and the USA) and applies bank, time (year), and country fixed effects regression analysis to determine the direct impact of corporate governance and cash flows on bank performance. Structural equation modeling is employed to investigate the mediating role of cash flows between corporate governance and bank performance. The results suggest that the impact of corporate governance on bank performance is more significant in developed countries than in developing countries. The results also show that investment cash flows mediate the relationship between corporate governance and bank performance in developed as well as developing countries, while operating cash flows mediate the relationship between bank performance and corporate governance in developing countries only.

Keywords: corporate governance; cash flows; bank performance; panel data (search for similar items in EconPapers)
JEL-codes: C23 G30 G34 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.mfsociety.org/modules/modDashboard/uplo ... 3hbbp1et55f6eqq4.pdf (application/pdf)
http://www.mfsociety.org/modules/modDashboard/uplo ... gleScholar/1615.html (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:mfj:journl:v:23:y:2019:i:1-2:p:1-36

Access Statistics for this article

Multinational Finance Journal is currently edited by Panayiotis C. Andreou

More articles in Multinational Finance Journal from Multinational Finance Journal Contact information at EDIRC.
Bibliographic data for series maintained by Theodossiou Panayiotis ().