Open AccessBoard Size, Non-Executive Board Members and Financial Performance in Non-Usury Banks in Iran
Author(s) -
Gholamreza Karami,
Tahere Karimiyan,
MohammadSadegh Ghaznavi
Publication year - 2016
Publication title -
international journal of business and social research
Language(s) - English
Resource type - Journals
eISSN - 2164-2559
pISSN - 2164-2540
DOI - 10.18533/ijbsr.v6i6.921
Subject(s) - corporate governance , accounting , business , stock exchange , sample (material) , executive board , financial system , finance , economics , management , chemistry , chromatography
Prior studies investigating the relation between the financial performance and corporate governance mechanisms for firms in Tehran Stock Exchange mainly exclude banks due to their different types of rules and structure. We study the relation between corporate governance structure and financial performance of the banks under the non-usury banking act. We study various corporate governance factors including board size and the number of non-executive board members using a sample of 21 banks for 2010 to 2012. Result show a significant positive correlation among board size and financial performance. However, non-executive board members do not correlate with financial performance.