THEEFFECTOFCORPORATEGOVERNANCEON BANK PERFORMANCE AND VALUATION: AN EMPIRICAL STUDY ON THE EGYPTIAN BANKING SECTOR
Dalia Mohammed khairy El-Madbouly;
Abstract
There has been a great deal of attention given to the issue of corporate governance in recent times. Good corporate governance is essential for economic growth and for promotion of the social welfare. Governance increases the efficiency ofthe stock market, what in its own would make the country economic growth more dynamic.
As a matter of fact, banking supervision cannot function well if sound corporate governance is not in place, and consequently, banking supervisors have strong interest in ensuring that there is effective corporate governance at every banking organization.
In reality, depositors and owners of bank capital all lose confidence in times of banking distress and seek simultaneously to save their money by withdrawing them. This leads to banking panic and the authorities have no option but to restore the stability with policy remedies that are more difficult and costly under a banking crisis. The government seeks to align the private incentives of market players with the social goal of financial stability. However, governments can do better, by anticipating the need for reforms and carrying them out in times of relative financial calm.
This thesis enriches the line of studies in corporate governance literature that could help policy makers engage in an informed decision-making to improve the efficiency of financial institutions. Ultimately, a better understanding of governance of financial institutions may help policy makers and regulators in their efforts to establish a more stable economic environment. The thesis consists of seven chapters; a brief overview of each chapter is given below:
Chapter one begins with defining corporate governance particularly from the banking•perspective. The chapter mertti"ons the importance of bank governance to the economy in general and especially in developing economies. Then, the chapter illustrates the specific characteristics of banks. After that, the chapter mentions the narrow and the wide approach of corporate governance. Finally, the chapter mentions the key players in bank corporate governance.
Chapter two summarizes the various corporate governance mechanisms. The chapter indicates that governance mechanisms can be classified into two broad categories; which are the internal and external governance mechanisms. At the beginning, the chapter presents the internal governance mechanisms. The board of directors and the general assembly of shareholders are often seen as the primary internal monitoring mechanism. After that, the chapter presents the external governance mechanisms.
As a matter of fact, banking supervision cannot function well if sound corporate governance is not in place, and consequently, banking supervisors have strong interest in ensuring that there is effective corporate governance at every banking organization.
In reality, depositors and owners of bank capital all lose confidence in times of banking distress and seek simultaneously to save their money by withdrawing them. This leads to banking panic and the authorities have no option but to restore the stability with policy remedies that are more difficult and costly under a banking crisis. The government seeks to align the private incentives of market players with the social goal of financial stability. However, governments can do better, by anticipating the need for reforms and carrying them out in times of relative financial calm.
This thesis enriches the line of studies in corporate governance literature that could help policy makers engage in an informed decision-making to improve the efficiency of financial institutions. Ultimately, a better understanding of governance of financial institutions may help policy makers and regulators in their efforts to establish a more stable economic environment. The thesis consists of seven chapters; a brief overview of each chapter is given below:
Chapter one begins with defining corporate governance particularly from the banking•perspective. The chapter mertti"ons the importance of bank governance to the economy in general and especially in developing economies. Then, the chapter illustrates the specific characteristics of banks. After that, the chapter mentions the narrow and the wide approach of corporate governance. Finally, the chapter mentions the key players in bank corporate governance.
Chapter two summarizes the various corporate governance mechanisms. The chapter indicates that governance mechanisms can be classified into two broad categories; which are the internal and external governance mechanisms. At the beginning, the chapter presents the internal governance mechanisms. The board of directors and the general assembly of shareholders are often seen as the primary internal monitoring mechanism. After that, the chapter presents the external governance mechanisms.
Other data
| Title | THEEFFECTOFCORPORATEGOVERNANCEON BANK PERFORMANCE AND VALUATION: AN EMPIRICAL STUDY ON THE EGYPTIAN BANKING SECTOR | Other Titles | لم يذكر | Authors | Dalia Mohammed khairy El-Madbouly | Issue Date | 2011 |
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