Impact of Corporate Governance on Non-Performing Loans of Nigerian Deposit Money Banks

Nyor, Terzungwe; Mejabi, Simon Kolawole

doi:10.12735/jbm.v2i3p12

Cited by 10 publications

(9 citation statements)

References 1 publication

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“…The addition or reduction in the number of directors in the board size does not significantly affect the banks' non-performing loans. This finding is consistent with the finding of Nyor et al (2013). However, it is inconsistent with the finding of Ahmad et al (2016).…”

Section: Regression Results and Discussionsupporting

confidence: 60%

“…Conversely, Nyor et al (2013) found that corporate governance did not significantly impact the non-performing loan. Based on the previous studies conducted, only a limited number of research studies studied the impact of corporate governance variables on the non-performing loan in Indonesia.…”

Section: Previous Empirical Studiesmentioning

confidence: 89%

“…NPL has been widely used as an indicator of financial performance in many studies. According to Nyor and Mejabi (2013), NPL has a significant impact on the bank and reflects the bank's asset quality. Ahmad et al (2016) also used this variable in their research on the Pakistani banking sector.…”

Section: Non-performing Loans (Npl)mentioning

confidence: 99%

“…This outcome could occur as a result of an ineffective number of directors, which could lead to a coordination problem on the board (Jensen, 1993). Nyor et al (2013) conducted another study that looked at the impact of board size on nonperforming loans at Nigerian deposit money banks. According to the findings of this study, bank size has no significant relationship with non-performing loans.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

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The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

Ramadhanti¹,

Butar²,

Pangaribuan³

2021

Journal of Business, Management, and Social Studies

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Objective – This study aims to know the impact of corporate governance mechanisms on the non-performing loan of a bank. This study also aims to analyze which corporate governance aspects are significant to the banks’ non-performing loans in Indonesia. Another objective of this study is to examine whether the relationship between corporate governance and non performing loan depends on bank ownership. This study’s corporate governance variables are the board size, board independence, and bank ownership category. This study focuses on the non-performing loan of the banks in Indonesia. Methodology – This study will examine 26 banks in Indonesia listed on the Indonesian Stock Exchange (IDX). It includes both foreign-owned (foreign bank) and domestic banks. The length of the period of observation is seven years, from 2012 to 2018. Panel data of these banks are analyzed using the fixed-effect regression. Findings – The regression result shows that board size and bank ownership category have no significant impact on the non-performing loan, while the board independence impacts non-performing loans negatively. Novelty – This study contributes to the academic literature, specifically on the issue of corporate governance in the banking sector. This study’s result and findings could be used as the reference for other studies and further research on the corporate governance issue. This study will also expand the literature about corporate governance in the Indonesian banking sector since there are still a limited number of studies that discussed this specific matter.

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Section: Regression Results and Discussionsupporting

confidence: 60%

Section: Previous Empirical Studiesmentioning

confidence: 89%

Section: Non-performing Loans (Npl)mentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

See 2 more Smart Citations

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

Ramadhanti¹,

Butar²,

Pangaribuan³

2021

Journal of Business, Management, and Social Studies

View full text Add to dashboard Cite

show abstract

“…Rinaningsih, 2008;Hariani, 2011;Poudel dan Hovey, 2012;Bourakba dan Zerargui, 2015;Ahmad et al, 2016. Peneliti lain menemukantidak menemukan pengaruh signifikan corporate governance terhadap resiko kredit, Nyor dan Mejabi (2013) Mendasarkan pada temuan penelitian yang beragam di atas dan saran penelitian Ramli et al (2014), penulis tertarik untuk menginvestigasi kembali pengaruh karakteristik perusahaan terhadap shari'ah governance dan dampaknya pada resiko kredit (pembiayaan).…”

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Pengaruh Karakteristik Perusahaan pada Shari’ah Governace, dan Shari’ah Governance Terhadap Resiko Pembiayaan

Utami

Sofhian

2018

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Penelitian bertujuan untuk mengetahui pengaruh karakteristik perusahaan (struktur kepemilikan, profitabilitas, ukuran perusahaan, leverage perusahaan) pada shari’ah governancedan pengaruh shari’ah governance terhadaprisiko pembiayaan. Shari’ah governance, sebagai mekanisme untuk memastikan kepatuhan prinsip syariah, banyak menjadi perhatian berbagai pihak (regulator, pelaku industri, konsultan dan peneliti). Dengan adanya hal tersebut penelitian ini diharapkan dapat berkontribusi pada bagaimana implementasi shari’ah governance ,dan dampaknya. Model yang dipakai dalam penelitian adalah SEM Partial Least Square (SmartPLS v.3.2.6). Model PLS adalah pemodelan lunak yang kuat yang dapat diterapkan untuk setiap skala data, tidak memerlukan banyak asumsi dan ukuran sampel tidak terlalu besar. Hasil uji model fit menunjukkan bahwa hanya ada tiga variabel yang sesuai untuk mempengaruhi shari’ah governance: struktur kepemilikan, profitabilitas dan ukuran perusahaan. Sedangkan analisis ketiga faktor tersebut hanya dua faktor yang terbukti mempengaruhi shariah governance: struktur kepemilikan dan ukuran perusahaan. Struktur kepemilikan telah menunjukkan pengaruh negatif terhadap penerapan shari’ah governance. Ukuran perusahaan terbukti berpengaruh positif terhadap implementasishari’ah governance . Sementara leverage dan profitabilitas tidak mempengaruhi implementasi shari’ah governance. Shari’ah governancejuga tidak berpengaruhpada risiko pembiayaan

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Examining the effect of board size on credit risk of universal banks in Ghana

Debrah

Preko

Seth

2022

Cogent Business & Management

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Impact of Corporate Governance on Non-Performing Loans of Nigerian Deposit Money Banks

Abstract: This study examines the impact of Corporate Governance (CG) variables of Board Size

Cited by 10 publications

References 1 publication

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

Pengaruh Karakteristik Perusahaan pada Shari’ah Governace, dan Shari’ah Governance Terhadap Resiko Pembiayaan

Examining the effect of board size on credit risk of universal banks in Ghana

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