The significance of corporate governance on the performance of Philippine publicly listed banks, 2000-2013

• Main Authors: Ballesteros, Theodore S., Flores, Kelly, Pamen, Bea E., Yau, Matthew Y.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Corporate governance > Philippines; Banks and banking > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18407
• Institution: De La Salle University

The stringent scrutiny of banks in the post-financial crisis period was caused by the several financial catastrophes that shook the financial world. This led to the growing trend of corporate governance. Furthermore, corporate governance in the Philippine setting, particularly for banks, seems to have been paid little attention to. This study aims to determine the relationship of corporate governance and bank performance in the Philippines. It is well established that the board plays a critical role in the governance of a corporation. Furthermore, the characteristics and composition of the board of directors are use as proxies for corporate governance because this study determines whether these variables would enchance the decision-making process and efficiency of the board so that they may better fulfill their duties and obligations, and ultimately improve bank performance. Revenue was the basis for the selection of the top ten (10) banks used in this study. Their annual corporate governance facts and performance data from 2000-2013 were obtained from their annual reports and financial statements. The results show that boards size, board age, board ownership, women directors, and independent directors all have a positive significant relationship with bank performance. The agency theory, resource dependence theory, human capital theory, social capital theory, and organizational behavior theory vindicate the positive relationships.