IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 1 2024
DOI: https://doi.org/10.56201/ijbfr.v10.no1.2024.pg62.76

---

Banking Governance and Financial Profitability in the CEMAC Zone

ELOUNDOU Etienne François

---

Abstract

This paper investigates the relationship between internal governance mechanisms, specifically the impact of the board of directors, and the financial profitability from a sample of 20 credit banks in the CEMAC zone over the period 2010-2017. By mobilising a quantitative methodology, using STATA 12.00 software, the results suggest that institutional and foreign directors have a significant and positive impact on financial profitability, in line with theoretical predictions, while public directors have a significant negative impact on profitability. Sufficiently large banks are more profitable than their smaller counterparts, while board size has no significant impact on bank financial profitability. The study recommends further privatisation of state-owned banks.

keywords:

Bank governance, governance mechanisms, board of directors, financial profitability.

---

References:

Adams, R., & Mehran, H. (2003). Board structure, banking firm performance and the Bank
Holding Company organizational form. Federal Reserve Bank of Chicago Proceedings,
Issue May, pp. 408-422.

Adams,R., & Mehran, H. (2008). Corporate performance, board structure and its determinants
in the banking industry. Federal Reserve Bank of New York, Staff Reports N° 330.

Aggarwal, R., & Jacques, K. (1998). Assessing the Impact of Prompt Corrective Action on
Bank Capital and Risk. Economic Policy Review, Federal Reserve Bank of New York.

DOWNLOAD PDF

---

Back