Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia

Banks plays one of the vital roles in the country and economics financial hub. Therefore, it is necessary to have proper governance in this sector in order to control the monetary policy of the economy and avoid any financial crisis. The main purpose of this research is to study the effect of corpor...

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Main Author: Muhammad, Mahdi Billah
Format: Final Year Project / Dissertation / Thesis
Published: 2019
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Online Access:http://eprints.utar.edu.my/3597/1/Research_Project_Muhammad_Mahdi_Billah.pdf
http://eprints.utar.edu.my/3597/
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spelling my-utar-eprints.35972019-11-25T15:17:36Z Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia Muhammad, Mahdi Billah H Social Sciences (General) HD28 Management. Industrial Management Banks plays one of the vital roles in the country and economics financial hub. Therefore, it is necessary to have proper governance in this sector in order to control the monetary policy of the economy and avoid any financial crisis. The main purpose of this research is to study the effect of corporate governance variables on the profitability of conventional and Islamic banks in Malaysia. A total of 18 banks were selected for the period covering 2013 to 2017 in order to identify the firm performance by the two most popular measurement tools that are ROA and ROE. Eleven variables which include three control variables were selected in order to conduct this research. Based on the descriptive study it is found that board size and other variables of the conventional bank were much higher compared to the Islamic bank. Further, a T-test is conducted in order to find the significance among the variable and found that except ROE, independent directors, foreign directors, and average remuneration all other variables found to be significant with each other including the control variables. Further, the pooled panel regression analysis indicates that all the variables except independent directors, female directors and two control i.e. bank size and customer deposit variable found insignificant with bank performance. Finally, from subsample analysis, for conventional bank, the remuneration of directors, female directors, bank age, board size and foreign directors and for Islamic bank independent directors, female directors, board meeting, bank size, customer deposit, board size, age of directors and education qualification are consistent with the entire sample. Therefore, based on the study it is concluded that there is a relationship between corporate governance variables with bank performance. 2019 Final Year Project / Dissertation / Thesis NonPeerReviewed application/pdf http://eprints.utar.edu.my/3597/1/Research_Project_Muhammad_Mahdi_Billah.pdf Muhammad, Mahdi Billah (2019) Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia. Master dissertation/thesis, UTAR. http://eprints.utar.edu.my/3597/
institution Universiti Tunku Abdul Rahman
building UTAR Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tunku Abdul Rahman
content_source UTAR Institutional Repository
url_provider http://eprints.utar.edu.my
topic H Social Sciences (General)
HD28 Management. Industrial Management
spellingShingle H Social Sciences (General)
HD28 Management. Industrial Management
Muhammad, Mahdi Billah
Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia
description Banks plays one of the vital roles in the country and economics financial hub. Therefore, it is necessary to have proper governance in this sector in order to control the monetary policy of the economy and avoid any financial crisis. The main purpose of this research is to study the effect of corporate governance variables on the profitability of conventional and Islamic banks in Malaysia. A total of 18 banks were selected for the period covering 2013 to 2017 in order to identify the firm performance by the two most popular measurement tools that are ROA and ROE. Eleven variables which include three control variables were selected in order to conduct this research. Based on the descriptive study it is found that board size and other variables of the conventional bank were much higher compared to the Islamic bank. Further, a T-test is conducted in order to find the significance among the variable and found that except ROE, independent directors, foreign directors, and average remuneration all other variables found to be significant with each other including the control variables. Further, the pooled panel regression analysis indicates that all the variables except independent directors, female directors and two control i.e. bank size and customer deposit variable found insignificant with bank performance. Finally, from subsample analysis, for conventional bank, the remuneration of directors, female directors, bank age, board size and foreign directors and for Islamic bank independent directors, female directors, board meeting, bank size, customer deposit, board size, age of directors and education qualification are consistent with the entire sample. Therefore, based on the study it is concluded that there is a relationship between corporate governance variables with bank performance.
format Final Year Project / Dissertation / Thesis
author Muhammad, Mahdi Billah
author_facet Muhammad, Mahdi Billah
author_sort Muhammad, Mahdi Billah
title Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia
title_short Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia
title_full Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia
title_fullStr Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia
title_full_unstemmed Corporate Governance and Bank Performance: Conventional vs Islamic Banks in Malaysia
title_sort corporate governance and bank performance: conventional vs islamic banks in malaysia
publishDate 2019
url http://eprints.utar.edu.my/3597/1/Research_Project_Muhammad_Mahdi_Billah.pdf
http://eprints.utar.edu.my/3597/
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score 13.211869