The Impact of Corporate Governance on the Technical Efficiency of Banks in Pakistan
--Muhammad Ali Khan and Yasir Bin Tariq
This study examines the relationship between corporate governance and technical efficiency of listed commercial banks of Pakistan over the period 2008-2015. The study employs a two-stage methodology. In the first stage, Data Envelopment Analysis (DEA) has been used to compute the technical efficiency of banks. In the second stage, random-effect Tobit regression is used to examine the impact of corporate governance (measured through board size, board independence, board diligence, ownership concentration and ownership type) on the technical efficiency of banks. It is observed that there is a mixed trend in the technical efficiency of commercial banks of Pakistan during the period 2008-2015. During 2008-2010, a decrease in average technical efficiency of banks was observed, and this may be due to the global financial crisis. Then an increase in average technical efficiency was observed, which means that the banks were recovering steadily. In the second stage, the results of random-effects Tobit regression show that ownership concentration has a positive and significant impact on technical efficiency. The firms with presence of foreign ownership are more efficient than local firms. No statistically significant relationship was observed between board meeting, board size, executive directors and technical efficiency. Among the control variables, bank’s age was found to be positively and significantly, and bank’s size was found to be negatively and significantly related to technical efficiency.
© 2017 IUP. All Rights Reserved.
The Interrelationship Between Corporate Governance and Corporate Social Responsibility in Indian Companies
--Mohd Sarim, Mohd Shamshad and Javaid Akhter
The paper attempts to discover the interrelationships between Corporate Governance and Corporate Social Responsibility (CG and CSR) through different aspects. The reason behind the attempt is to analyze how the companies have postulated CG and CSR in their philosophies. Is there any difference between the outlooks of companies toward CG and CSR? How did the companies in their philosophy statements address the issues and dimensions of CG and CSR? The paper tries to explore various propositions on the relationship between CG and CSR through content analysis. The data for content analysis is obtained from annual reports of Nifty 50 companies. The reports are scanned for CG and CSR philosophy statements of companies with respect to marking the presence of a word, a sentence, a statement, a phrase or an idiom complementing any of the dimensions of CG and CSR identified for coding. A huge overlap between CG and CSR is found that demonstrated a two-way relationship significantly impacting each other. The study urges to see both the aspects as complementary to each other in the best interests of the company, stakeholder, and nation as a whole. The study gives an overview of the philosophies of companies representing the economic barometer of the country in terms of governance and social responsibility that can be useful for assessing the strengths of CG and CSR interrelationship in Indian companies. It samples the philosophies of companies with respect to both the aspects of CG and CSR.
© 2017 IUP. All Rights Reserved.
Glass Ceiling: Virtual Reality or Mythical Truth?
A Study with Reference to Select Companies
Listed on Bse 30
--Anindya Ganguly,
Jasmine Rao and Sumanta Dutta
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