Effect on Corporate Governance on Bank Performance in Bangladesh

Abstract

The main objective of this project is to introduce about the corporate governance on bank performance and the way the corporate governance workout in Bangladesh Banking area. This project would also provide basic fundamental opinion to realize about the corporate governance and Bangladeshi Banking System. Whereas banks run under a different board of directors, ownership structures, and government regulations, there is no earmarked optimal corporate governance pattern that may be implemented to all banks. This study investigates the effect of internal and external corporate governance mechanisms such as dependent variable, independent variable, and audit control variable, as well as other structures such as board of directors, board size, board meeting, independent members, audit committee, independent audit member also growth, leverage, EPs, ROA, bank size (total asset) and bank age on bank financial performance. In total of 30 Bank are taken that are listed under Dhaka Stock Exchange (DSE) as sample and picked up three years of data on their corporate governance on bank performance from their own annual reports to explore the final results. Regression evaluation is used to take a look at the aforementioned impact. The effects of this study disclose that there is a pivotal connection between corporate governance and bank performance. Board conferences and bank performance have a positive and significant impact on return on assets (ROA). The regression coefficient, a regression formula is evaluated and explained the variables sensibility as an evidence of the influences of the independent variables on the ROA. However, the literature indicates that the correlation between corporate governance and bank performance is still not neatly founded and that impact of corporate governance on bank financial performance in developing countries is still comparatively narrow.