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Determinants of the Financial Performances of Commercial Banks in Ethiopia: From Internal Corporate Governance Practice Perspective

Journal of Eastern European and Central Asian Research

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Title Determinants of the Financial Performances of Commercial Banks in Ethiopia: From Internal Corporate Governance Practice Perspective
 
Creator Sakilu, Olani Bekele; Dilla University, Ethiopia
Kibret, Berhanu Getinet; Dilla University, Ethiopia
 
Subject accounting, economics,finance
Determinants, Internal Corporate Governance, Financial Performance, Commercial Banks
Social Science Word version
 
Description ABSTRACT The purpose of this study is to examine the determinants of the financial performances of commercial banks in Ethiopia from an internal corporate governance practices perspective using time series data covering the period of 2008-2013. In the study, financial performance is measured by ROA and ROE of the banks. The study finds that qualified directors in the board, directors with prior experience in banking, chief executive officer compensation and existence of risk management committee in the board have a statistically significant and positive effect on banks’ performance in terms of both ROA and ROE; whereas ownership dispersion has a statistically significant and negative effect on banks performance.  The effect of frequency of board meeting on financial performance of bank is positive and significant in terms of ROA, but significant and negative in terms of ROE.  On the other hand, variables such as board size, female director in the board, and the existence of audit committee in the board did not have a statistically significant effect on bank’s performance.
 
Publisher Institute of Eastern Europe and Central Asia
 
Contributor dilla university,Ethiopia
 
Date 2015-03-25
 
Type info:eu-repo/semantics/article
Peer-reviewed Articles
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier http://ieeca.org/journal/index.php/JEECAR/article/view/82
10.15549/jeecar.v2i1.82
 
Source Journal of Eastern European and Central Asian Research (JEECAR); Vol 2, No 1 (2015): Journal of Eastern European and Central Asian Research
 
Language eng
 
Relation http://ieeca.org/journal/index.php/JEECAR/article/view/82/pdf
 
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