Board gender diversity, corporate governance and bank efficiency in Ghana: a two stage data envelope analysis (DEA) approach

Adeabah, David; Gyeke-Dako, Agyapomaa; Andoh, Charles

doi:10.1108/cg-08-2017-0171

Cited by 97 publications

(71 citation statements)

References 51 publications

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“…In an industry as heavily regulated and opaque as banking industry (Kaymak & Bektas, 2008), knowledge is a vital form of business capital, and financial companies' improvement involves a variety of perspective, experience, and insights that can be acquired by board diversity (Khatib et al, 2020; Onuorah, Osuji, & Ozurumba, 2019). The resource dependence theory has been applied in 17 quantitative studies that discuss several topics related to board diversity such as bank performance (Boadi & Osarfo, 2019; Farag & Mallin, 2017; Ghosh, 2017; Talavera et al, 2018), compensation policy (García‐Meca, 2016), CSR (Orazalin, 2019), bank efficiency (Adeabah, Gyeke‐Dako, & Andoh, 2019) (Ramly et al, 2017), earnings management (Fan et al, 2019), and accounting quality (García‐Sánchez, Martínez‐Ferrero, & García‐Meca, 2017).…”

Section: Slr Findingsmentioning

confidence: 99%

Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions

et al. 2020

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Going beyond the mere gender diversity in the boardroom, this systematic review comprehensively covers the research on board diversity of financial institutions. More specifically, we cover gender diversity, as well as other characteristics of diversity, such as nationality, age, tenure, experience, education, ethnicity, and religion. A systematic literature review was employed using Scopus and Web of Science databases, covering all publications until May 2020, which resulted in 91 studies from 66 top‐ranked journals in accounting, finance, and economic fields. We analyze them based on the journal, methodology, research construct questions, and theoretical perspectives. Our results highlight the substantial knowledge gaps and the inconsistent findings of prior studies on several aspects of the field, suggesting avenues for further studies in terms of research designs, settings, scope, and theories. We argue that there is a need to explore other board diversity attributes rather than focusing on the gender diversity of the boards of financial institutions to achieve sustainable development. Also, more work is outlined on topics related to board diversity of financial firms that receive limited attention from scholars, such as (but not limited to) environmental performance, capital structure, intellectual capital, innovation and earnings quality of financial institutions, as well as the indirect effect of policy settings.

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Section: Slr Findingsmentioning

confidence: 99%

Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions

et al. 2020

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“…Contrary to this finding, the results from emerging economies in Africa have been distinctive. Adeabah et al (2019) used the data envelopment analysis approach to compute the technical efficiency of commercial banks in Ghana and argued that "learning by doing" leads to technically inefficient banks. The empirical evidence from non-financial firms also confirms that the firm age effect is less efficient and is insignificant (Lundvall and Battese, 2000).…”

Section: Hypothesis 2 (H2): Foreign Banks Have a Positive Effect On Tmentioning

confidence: 99%

“…The prices of these inputs are as follows: price of lendable funds is measured as the ratio of interest expense to total deposits (W1); the price of labor is measured as the ratio of personnel expense to the number of staff (W2); the price of physical capital is measured as the ratio of operating expense less personnel expense to fixed asset (W3); and the price of a bank's board is measured as the ratio of directors' fees, including boardrelated expenses (if any), to the number of directors on the board (W4). Input variables (i) to (iv) are motivated by prior studies such as Sathye (2001) and Adeabah et al (2019). In particular, the board size framework of board structure is included because bank efficiency measurement benefits from the inclusion of non-financial variables (Adeabah et al, 2019).…”

Section: Bank Cost Efficiency: Data Envelopment Analysis (Dea)mentioning

confidence: 99%

“…Input variables (i) to (iv) are motivated by prior studies such as Sathye (2001) and Adeabah et al (2019). In particular, the board size framework of board structure is included because bank efficiency measurement benefits from the inclusion of non-financial variables (Adeabah et al, 2019). As output variables, we use interest-bearing assets (i.e., loans and advances to customers, due from other banks and financial institutions) (Y1), interest income (Y2) and trading income (Y3).…”

Section: Bank Cost Efficiency: Data Envelopment Analysis (Dea)mentioning

confidence: 99%

“…Following prior studies (e.g. Adeabah et al, 2019;Ghosh, 2016;García-Herrero et al, 2009; Jaffee and Levonian 2001) we include: (i) foreign banks, (ii) market knowledge, (iii) capitalization, (iv) liquidity, (v) bank Z-score, (vi) institutional quality and (vii) GDP per capita growth to control for omitted variables bias.…”

Section: Variables Measurementmentioning

confidence: 99%

See 2 more Smart Citations

Cost efficiency and welfare performance of banks: evidence from an emerging economy

Adeabah

Andoh

2020

IJMF

Self Cite

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PurposeThe study examines the relationship between the consequential social cost of market power (i.e. welfare performance of banks) and cost efficiency using data covering the period 2009 to 2017 from the Ghanaian banking industry.Design/methodology/approachThe study adopts the ordinary least squares (OLS), fixed effect (FE) panel regression and the quantile regression (QR) approaches to control for heterogeneity and provide increased room for policy relevance. The two-stage least squares instrumental variables (2SLS-IV) regression is used to ensure the robustness of the findings against the problem of possible reverse causality.FindingsThe results indicate a positive relationship between banks' welfare performance and cost efficiency, which suggests that greater cost efficiency hedges welfare losses. In other words, welfare gains and cost-efficient banks are not mutually exclusive. Also, the results show evidence that the sensitivity of welfare gain to cost efficiency depends on the knowledge of local market dynamics. Further, the findings from the QR estimation suggest that, but for welfare loss at low (Q.25) to the median (Q.50) quantiles, cost efficiency is a necessary and sufficient condition to hedge the welfare losses.Practical implicationsThe results demonstrate that financial consumer protection cannot be achieved without cost efficiency in the presence of both foreign banks and high market knowledge. Therefore, our paper suggests an integrated cost efficiency policy approach that has the complementary effect of a robust information sharing mechanism and incentives to hedge against welfare losses in the banking sector of emerging economies. Moreover, if welfare gain is synonymous with cost-efficient banks, then the presence of a quiet life is typical of financial consumer protection.Originality/valueThis study provides insight into the importance of cost efficiency to the public policy of financial consumer protection in an era of foreign banks' dominance. From the review of prior literature, this paper is the first to apply the QR estimation technique to examine the effect of cost efficiency throughout the conditional distribution of bank welfare performance rather than just the conditional mean effect of cost efficiency.

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Gender diversity inclusive board structure and firm performance: Evidence from West Africa

Tuo

Tesfagebreal

et al. 2021

J Corp Accounting Finance

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We analyze the relationship of board structure features with non‐financial firm's performance among West African listed companies. The data was collected though content analysis of annual reports and audited financial statement of 109 West African listed companies over 2002–2017 by utilized three financial performance proxies, namely return on assets, return on equity, and Tobin Q. We employed several model specification tests and regression methods including pooled OLS, fixed effects and GMM two stage models. The results indicate statistically positive relationship between board size and firm performance but only significant with Tobin's Q and positive significant effect of women directorship and women chief executive officer on firm performance. Independent director has statistically positive significant effect on firm financial performance. Paradoxically, women independent directors has negative significant impact on financial performance. Findings imply that corporations should have a board structure including women executives’ directors, woman CEO and men independent directors as a way to enhance firm's performance. This paper contributes to developing countries scant literature on determinants financial performance and corporate governance practices by provides evidence on why and how corporation should have independent directors and gender diversity inclusive board structure to enhance firm's performance ones in developing countries.

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Board gender diversity, corporate governance and bank efficiency in Ghana: a two stage data envelope analysis (DEA) approach

Abstract: Board gender diversity, corporate governance and bank efficiency in Ghana: a two-stage data envelope analysis (DEA) approach

Cited by 97 publications

References 51 publications

Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions

Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions

Cost efficiency and welfare performance of banks: evidence from an emerging economy

Gender diversity inclusive board structure and firm performance: Evidence from West Africa

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