A ‘peer reviewed’ journal indexed on Cabell’s Directory,
and also distributed by EBSCO and Proquest Database
The IUP Journal of Corporate
Governance is a quarterly journal focusing on governance
and ethics framework, role of boards, role of CEOs,
CFOs and other senior management, role of other stakeholders,
disclosure and transparency, regulation and best
Privileged access to Online edition for Subscribers.
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.
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.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.