Ownership, Corporate Governance, and Bank Performance in Iran

An efficient banking system with the right monetary policy by controlling liquidity and inflation and directing resources to productive economic activities plays an essential role in economic development. However, banks’ performance is influenced by various political, economic, managerial, and socia...

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Main Authors: Abdorreza Asadi, Mahyar Ramezankhani
Format: Article
Language:English
Published: Wiley 2022-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2022/1491392
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author Abdorreza Asadi
Mahyar Ramezankhani
author_facet Abdorreza Asadi
Mahyar Ramezankhani
author_sort Abdorreza Asadi
collection DOAJ
description An efficient banking system with the right monetary policy by controlling liquidity and inflation and directing resources to productive economic activities plays an essential role in economic development. However, banks’ performance is influenced by various political, economic, managerial, and social factors, and the study of these factors has been considered the topic of interest to researchers. This paper uses the structural equation modeling method to investigate the effect of ownership structure and corporate governance on listed banks’ performance in the Tehran Stock Exchange from 2011 to 2017. Based on the results, ownership structure dimensions have a relatively insignificant impact on corporate governance. However, the financial performance dimension has a statistically significant negative effect. The results also indicate that corporate governance is significantly associated with a positive effect on financial performance. Consequently, the results indicate that corporate governance may mitigate the negative impact that ownership structure dimensions may have on bank financial performance.
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institution Kabale University
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series Discrete Dynamics in Nature and Society
spelling doaj-art-21a95b7098a74ed18e2f706e03099c042025-02-03T06:05:02ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/1491392Ownership, Corporate Governance, and Bank Performance in IranAbdorreza Asadi0Mahyar Ramezankhani1Department of ManagementQueen’s School of EngineeringAn efficient banking system with the right monetary policy by controlling liquidity and inflation and directing resources to productive economic activities plays an essential role in economic development. However, banks’ performance is influenced by various political, economic, managerial, and social factors, and the study of these factors has been considered the topic of interest to researchers. This paper uses the structural equation modeling method to investigate the effect of ownership structure and corporate governance on listed banks’ performance in the Tehran Stock Exchange from 2011 to 2017. Based on the results, ownership structure dimensions have a relatively insignificant impact on corporate governance. However, the financial performance dimension has a statistically significant negative effect. The results also indicate that corporate governance is significantly associated with a positive effect on financial performance. Consequently, the results indicate that corporate governance may mitigate the negative impact that ownership structure dimensions may have on bank financial performance.http://dx.doi.org/10.1155/2022/1491392
spellingShingle Abdorreza Asadi
Mahyar Ramezankhani
Ownership, Corporate Governance, and Bank Performance in Iran
Discrete Dynamics in Nature and Society
title Ownership, Corporate Governance, and Bank Performance in Iran
title_full Ownership, Corporate Governance, and Bank Performance in Iran
title_fullStr Ownership, Corporate Governance, and Bank Performance in Iran
title_full_unstemmed Ownership, Corporate Governance, and Bank Performance in Iran
title_short Ownership, Corporate Governance, and Bank Performance in Iran
title_sort ownership corporate governance and bank performance in iran
url http://dx.doi.org/10.1155/2022/1491392
work_keys_str_mv AT abdorrezaasadi ownershipcorporategovernanceandbankperformanceiniran
AT mahyarramezankhani ownershipcorporategovernanceandbankperformanceiniran