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ARTÍCULO
TITULO

The Role of Board Governance on Bank Performance

Zuriawati Zakaria    
Noorfaiz Purhanudin    
Ahmad Nazri Wahidudin    

Resumen

This study uses a sample of 119 commercial banks in Asia (specifically China, Philippine, Indonesia, Japan, Malaysia and Thailand) to test the impact of board governance on the bank performance. The result reported based on OLS and within estimators. In addition, two step system estimator is employed in this study to solve endogeneity problem in corporate governance literature. The finding reported that bank with large board and more independent directors sit on board it help the bank to achieve higher performance. The result shows that bank can achieve better performance with younger directors. While CEO duality and female directors are insignificant to influence the bank performance. The result also reported that the higher loan losses provision leads to bank performance decline. This study employ various governance characteristics towards performance among banking sector in selected Asian countries. The result of this study highlight the effectiveness of the board as a functioning device in monitoring and advising manager.

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