Efficacy of Corporate Governance in Determining Firm Performance: A Panel Data Approach

The present study analyses the level of governance upheld by Indian banks and its effect on their financial performance. The study also analyses the role of gender diversity in moderating the effect of corporate governance on bank performance. The study has been conducted on 30 public and private sector banks operating in India for a period of 12 years. Content analysis technique has been used to assess the level of governance in banks with the help of a corporate governance scorecard. Various accounting ratios have been used as a proxy for firm performance along with required control variables. Panel data regression analysis has been performed to analyse the effect of level of corporate governance on performance of the banks. The results show that the level of corporate governance maintained by the banks does not have a significant effect on their financial performance. The study also concludes that though gender diversity does not have a main effect on bank performance, it plays a significantly positive role in affecting the impact of corporate governance on bank performance
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