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Corporate governance and banks’ productivity: evidence from the banking industry in Bangladesh

Md. Harun Ur Rashid (), Shah Asadullah Mohd. Zobair (), Md. Asad Iqbal Chowdhury () and Azharul Islam ()
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Md. Harun Ur Rashid: International Islamic University Chittagong (IIUC)
Shah Asadullah Mohd. Zobair: International Islamic University Chittagong (IIUC)
Md. Asad Iqbal Chowdhury: International Islamic University Chittagong (IIUC)
Azharul Islam: Bangladesh University of Professionals

Business Research, 2020, vol. 13, issue 2, No 9, 615-637

Abstract: Abstract Though remarkable literature exploring productivity and efficiency has emerged since the last half of the previous century, but dearth studies have been found in showing the impact of corporate governance on banks’ productivity. The study aims to investigate the banks’ productivity and its relationship with corporate governance. For this purpose, the study examines the productivity of 30 listed banks of Bangladesh deploying a Malmquist Productivity Index (an extension of Data Envelopment Analysis) with a panel data covering the period of five years from 2013 to 2017. The empirical results show that the average productivity of the banks is 1.03%. Finally, the ordinary least square (OLS), fixed effect (FE), and random effect (RE) regression were run separately. The research outcomes show that the productivity of the Bangladeshi banks is significantly influenced by financial performance, ownership structure, and board characteristics. The study provides the researchers, academicians, management of the banks, and regulatory body a new insight of how corporate governance influences the banks’ productivity so that they can formulate a better policy to generate more productivity.

Keywords: Productivity; MPI; Corporate governance; Banking industry; Bangladesh (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s40685-020-00109-x

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