*Research Scholar, Mewar University, Rajasthan, India
**Vice Chancellor, Ansal University, Gurgaon, India
Assistant Professor, Jaipuria Institute of Management Studies, Indirapuram, Ghaziabad, India
Online published on 6 January, 2014.
The objective of the paper is to investigate the relationship between elements of corporate governance and performance indicators of banks in India. For this purpose, 25 banks were chosen from the scheduled commercial banks listed in BSE. The corporate governance variables under study are CEO duality, number of directors, board committees, board meetings and independent non-executive directors. The performance indicators of banks under study are return on assets, profit per employee, non-performing assets, net interest margin, operating profits and earnings per share.
A regression model was tested with three independent variables i.e., chairman and CEO duality, board meetings and independent non-executive directors while the dependent variable was return on assets. The regression model showed that three corporate governance variables explain 40% variance on the ‘return on assets’ of the banks. The results show some significant relationship between the governance variables and bank performance indicators.
Corporate governance, firm performance, scheduled commercial banks
