Resilience exploring the adaptive capacities of Corporate Governance practices in influencing Banking Efficiency in emerging market

Abstract

The purpose of this study is to investigate the impact of corporate governance on the efficiency of listed banks in emerging markets between 2012 and 2022. Data envelopment analysis (DEA) is a tool used to measure different types of efficiency, including scale, pure technique, and technical efficiency. In this study, regression models were used to test research hypotheses using panel data techniques. The data were obtained from annual financial statements provided by state-owned banks in emerging markets. Efficiency can result from the deployment of resources, as learning curve theory and agency theory suggest. There is no evidence of multi-collinearity based on the variance inflation factor or correlation. The regression results indicate a positive correlation between corporate governance and bank financial efficiency. Institutional and internal ownership negatively affect the efficiency of companies, while independent boards, women on boards, and managerial ownership of directors have a beneficial effect on the effectiveness of banks. Our findings provide valuable information for policymakers in emerging markets who are responsible for improving the governance structure in the banking sector.