The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial Health

This study aimed to examine the financial health of the corporate governance-bank efficiency relationship. The statistical population encompasses all commercial, non-commercial, and specialised banks during 2011-2019. Since its statistical value is low, the sample size equals the statistical populat...

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Main Authors: Yasna Ghaderi, Hamzeh Didar, Mehdi Heydari
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2022-01-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_41457_2325ec2d05caf042ff8f8b27da7b02ba.pdf
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author Yasna Ghaderi
Hamzeh Didar
Mehdi Heydari
author_facet Yasna Ghaderi
Hamzeh Didar
Mehdi Heydari
author_sort Yasna Ghaderi
collection DOAJ
description This study aimed to examine the financial health of the corporate governance-bank efficiency relationship. The statistical population encompasses all commercial, non-commercial, and specialised banks during 2011-2019. Since its statistical value is low, the sample size equals the statistical population. According to previous studies and various sources, the efficiency of banks was calculated using a nonparametric data envelopment analysis (DEA) method. Corporate governance was computed using the associated dummy variables. The index of financial health determinants was also estimated using the CAMELS system and ranked by Technique For Order Preference By Similarity To Ideal Solution (TOPSIS) method. Findings showed that corporate governance has a significant effect on the efficiency of banks and the financial health of banks. In addition, financial health has a significant effect on the efficiency of banks. Since the study's first hypothesis was not rejected, financial health with an incomplete mediating role significantly affected the relationship between corporate governance and bank efficiency.
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spelling doaj-art-81ddec40c6f34d1ca2ec5c5296e9a0162024-12-25T06:52:21ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422022-01-0161355110.22067/ijaaf.2022.4145741457The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial HealthYasna Ghaderi0Hamzeh Didar1Mehdi Heydari2Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, IranDepartment of Accounting, Faculty of Economics and Management, Urmia University, Urmia, IranDepartment of Accounting, Faculty of Economics and Management, Urmia University, Urmia, IranThis study aimed to examine the financial health of the corporate governance-bank efficiency relationship. The statistical population encompasses all commercial, non-commercial, and specialised banks during 2011-2019. Since its statistical value is low, the sample size equals the statistical population. According to previous studies and various sources, the efficiency of banks was calculated using a nonparametric data envelopment analysis (DEA) method. Corporate governance was computed using the associated dummy variables. The index of financial health determinants was also estimated using the CAMELS system and ranked by Technique For Order Preference By Similarity To Ideal Solution (TOPSIS) method. Findings showed that corporate governance has a significant effect on the efficiency of banks and the financial health of banks. In addition, financial health has a significant effect on the efficiency of banks. Since the study's first hypothesis was not rejected, financial health with an incomplete mediating role significantly affected the relationship between corporate governance and bank efficiency.https://ijaaf.um.ac.ir/article_41457_2325ec2d05caf042ff8f8b27da7b02ba.pdfbank efficiencyfinancial healthcorporate governancedata envelopment analysisbanking
spellingShingle Yasna Ghaderi
Hamzeh Didar
Mehdi Heydari
The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial Health
Iranian Journal of Accounting, Auditing & Finance
bank efficiency
financial health
corporate governance
data envelopment analysis
banking
title The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial Health
title_full The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial Health
title_fullStr The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial Health
title_full_unstemmed The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial Health
title_short The Role of Corporate Governance on the Efficiency of Banks Considering the Mediating Role of Financial Health
title_sort role of corporate governance on the efficiency of banks considering the mediating role of financial health
topic bank efficiency
financial health
corporate governance
data envelopment analysis
banking
url https://ijaaf.um.ac.ir/article_41457_2325ec2d05caf042ff8f8b27da7b02ba.pdf
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