Good Corporate Governance is Good for Banks’ Bottom Line

Sound corporate governance not only boosts banks’ efficiency, it is also good for the profit of Australian banks and their shareholders. However, new research shows that factors such as the number of board meetings, the involvement of large shareholders in boardroom decisions and whether or not the board has independent members don’t play a significant role in achieving those goals. Our study, published in the Journal of International Financial Markets, Institutions and Money, investigated the effectiveness of certain corporate governance measures on the performance of 11 Australian banks from 1999 to 2013.