Corporate governance of banks and its relationship with performance and risk indicators

DOI: https://doi.org/10.4025/enfoque.v39i3.47403
Keywords: Banking; Corporate Governance Index for banks; performance indicators and risk for banks

Abstract

The Corporate Governance (GC) theme is one of the most evident in recent years in accounting. The research aims to analyze the GC level of brazilian financial institutions, due to its importance across the stability of national economic and financial system, resulting in a greater number of stakholders interested in its performance. The main objective is to verify that banking regulation is a substitute or complement to governance and can influence the performance and risk of banks. Therefore, the study proposed a specific governance index for banks (IGOV-banks), as mentioned in the national and international literature did not attend the enforcement sector. Next, the performance and risk variables identified were based on the US methodology used by the International Monetary Fund (IMF) The econometric methodology was Analysis Panel. The sample included the 50 largest banks in the Top50Bacen report for the period 2010 to 2014. The survey results indicate that banking regulation is the proper corporate governance, in fact, many banks do not meet or banking legislation. The results reveal that the IGOV-banks positively influenced the performance and negatively the risk of institutions, having at least one variable with expected results found. Regarding the risk of sub-hypotheses, the regressions showed that both the market risk and the credit risk were not significant. Operational risk and liquidity risk were significant. In concluding the present study, it is expected to have pointed out that corporate governance in banks has to evolve beyond what is required by regulation, but even so, the higher the IGOV-Bancos. higher the performance and lower the risk.

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Author Biographies

Jéssika Nassif Korontai, Programa de Pós-Graduação em Contabilidade da Universidade Federal do Paraná

Mestre em Contabilidade pelo Programa de Pós-Graduação em Contabilidade da Universidade Federal do Paraná.

Marcos Wagner da Fonseca, Departamento de Administração Geral e Aplicada e Programa de Pós-Graduação em Contabilidade da Universidade Federal do Paraná.

Graduado em Ciências Econômicas pela Universidade de São Paulo (1993), Mestre em Teoria Econômica pela Universidade Estadual de Maringá (2002) e Doutor em Desenvolvimento Econômico pela Universidade Federal do Paraná (2008). Atualmente é professor adjunto do Departamento de Administração Geral e Aplicada da Universidade Federal do Paraná, atuando no ensino de graduação e pós-graduação. Atua como Professor Permanente do Programa de Pós-Graduação em Contabilidade da UFPR. Tem experiência na área de Finanças, Economia e Administração Pública, atuando principalmente nos seguintes temas: Sistema Financeiro, Finanças Corporativas, Análise de Investimento, Governança Corporativa, Impacto das Políticas Públicas, Economia da Estratégia.

Published
2020-10-02
How to Cite
Korontai, J. N., & Fonseca, M. W. da. (2020). Corporate governance of banks and its relationship with performance and risk indicators. Enfoque: Reflexão Contábil, 39(3), 151-168. https://doi.org/10.4025/enfoque.v39i3.47403
Issue
Vol 39 No 3 (2020): Enf.: Ref. Cont.
Section
Original Articles

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