Corporate Governance Influence on Banking Performance. An Analysis on Romania and Bulgaria
Author(s) -
Mihaela Onofrei,
Bogdan Fîrţescu,
Terinte Paula-Andreea
Publication year - 2018
Publication title -
scientific annals of economics and business
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.204
H-Index - 6
eISSN - 2501-3165
pISSN - 2501-1960
DOI - 10.2478/saeb-2018-0020
Subject(s) - categorical variable , profitability index , corporate governance , panel data , bulgarian , sample (material) , business , romanian , accounting , regression analysis , variables , econometrics , economics , statistics , finance , mathematics , chromatography , linguistics , philosophy , chemistry
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.
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