Corporate Governance Influence on Banking Performance. An Analysis on Romania and Bulgaria

The aim of the paper is to find if the corporative governance characteristics have an impact on bank performance. We conducted an OLS regression on panel data (fixed, random effects and first-difference). We used data from Romanian and Bulgarian commercial banks as reported by Bureau van Dijk databa...

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Bibliographic Details
Main Authors: Onofrei Mihaela, Firtescu Bogdan-Narcis, Terinte Paula-Andreea
Format: Article
Language:English
Published: Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house 2018-09-01
Series:Scientific Annals of Economics and Business
Subjects:
G34
G21
C23
Online Access:http://www.degruyter.com/view/j/saeb.2018.65.issue-3/saeb-2018-0020/saeb-2018-0020.xml?format=INT
Description
Summary:The aim of the paper is to find if the corporative governance characteristics have an impact on bank performance. We conducted an OLS regression on panel data (fixed, random effects and first-difference). We used data from Romanian and Bulgarian commercial banks as reported by Bureau van Dijk database and categorical variables manually collected by analyzing the annual reports of the banks from our sample. These latest dummy variables reflect the corporative governance component for our model. The data used in our paper is from 2003 to 2015 period. Our results showed that there are some statistically significant effects of our categorical variables on bank profitability in both countries, so, the good practice of corporate should be applied for obtaining higher bank’s performance.
ISSN:2501-3165