Revue du Journal arabe des affaires et de la gestion

Corporate Governance in Financial Institutions in Bangladesh: A Preliminary Study

Abstract

Naheem Mahtab and Mohammad Abdullah

Corporate governance is an important issue these days. Good corporate governance can lead to a lot of positive effects on financial institutions. Proper implementation of corporate governance has become one the concerning issue in global arena. Considering the current condition of financial institution of Bangladesh it has become important for Bangladesh to focus on it. A lot of research has been carried out to see the effect of corporate governance in financial institutions. Accordingly, this study aimed to explore to find the effect of corporate governance in financial institutions in Bangladesh. In doing so we have summarized the findings of the empirical studies, drawn the conceptual framework, measured corporate governance of financial institution by using data of 15 (fifteen) listed private commercial banks (out of 30) in Bangladesh for the time horizon of 5 years (2009-2014). The variables used in this study to find out the effect of corporate governance in Bangladeshi financial institutions are: average return on equity, average return on assets, average allocative efficiency, average technical efficiency and other variables. In most of the cases positive relationship was determined between the variable discussed.