Corporate Governance, Risk Management, and Bank Performance in the GCC Banking Sector
type: CreativeWork
description: Abstract The current study aims to contribute to Corporate Governance CG and Risk Management RM literature by providing empirical evidence of the relationship between the three construct: CG, RM and Bank Performance BP within the GCC banking sector. Furthermore, the Islamic data and conventional data have been separated to investigate the association between CG, RM and BP. To do so, 90 active banks (30 Islamic – 60 conventional) banks have been selected as a sample for ten years period from (2003 – 2012), and subsequently used the regression analysis (Ordinary Least Square OLS) for the four selected models as follows; Regarding the empirical results of Model (1) which investigate the relationship between CG’s variables and BP measured by ROE and ROA for all banks’ data; Islamic data and conventional data, the result indicate that the board size, gender diversity, role duality and audit committee are insignificantly associated with bank performance measured by ROE in all types of banks. In addition, in Islamic banks the Non-Executive Board Member NEBM and credit and investment committee are negatively and significantly associated with ROE, however, this association is insignificant in conventional banks. The capital ratio is positively and significantly associated with ROA in all types of banks. Furthermore, the gender diversity is insignificantly associated with bank performance measured by ROA in both Islamic and conventional banks. Interestingly, bank size is significant and positive with bank performance measured by both of ROE and ROA in all types of banks. Model (2) investigates the relationship between RM’s variables and BP measured by ROE and ROA for all banks’ data; Islamic data and conventional data. The results indicate that capital risk and liquidity risk are insignificant with BP measured by ROE in all types of banks. The association between non-performing loan and credit risk with ROE are insignificant in Islamic banks, however, this association is sign…
abstract: Abstract The current study aims to contribute to Corporate Governance CG and Risk Management RM literature by providing empirical evidence of the relationship between the three construct: CG, RM and Bank Performance BP within the GCC banking sector. Furthermore, the Islamic data and conventional data have been separated to investigate the association between CG, RM and BP. To do so, 90 active banks (30 Islamic – 60 conventional) banks have been selected as a sample for ten years period from (2003 – 2012), and subsequently used the regression analysis (Ordinary Least Square OLS) for the four selected models as follows; Regarding the empirical results of Model (1) which investigate the relationship between CG’s variables and BP measured by ROE and ROA for all banks’ data; Islamic data and conventional data, the result indicate that the board size, gender diversity, role duality and audit committee are insignificantly associated with bank performance measured by ROE in all types of banks. In addition, in Islamic banks the Non-Executive Board Member NEBM and credit and investment committee are negatively and significantly associated with ROE, however, this association is insignificant in conventional banks. The capital ratio is positively and significantly associated with ROA in all types of banks. Furthermore, the gender diversity is insignificantly associated with bank performance measured by ROA in both Islamic and conventional banks. Interestingly, bank size is significant and positive with bank performance measured by both of ROE and ROA in all types of banks. Model (2) investigates the relationship between RM’s variables and BP measured by ROE and ROA for all banks’ data; Islamic data and conventional data. The results indicate that capital risk and liquidity risk are insignificant with BP measured by ROE in all types of banks. The association between non-performing loan and credit risk with ROE are insignificant in Islamic banks, however, this association is sign…
author: Elbahar, Ehab
language: eng
keywords: Corporate Governance, Risk Management, Bank Performance, GCC Banking Sector
date published: 2016-01-01T08:00:00Z
date modified: 2026-07-24T03:50:03Z
provider: University of Plymouth
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Plymouth