Corporate governance bank performance relationship: A review on developed and developing countries

The corporate scandals that have occurred in the last 30 years and have led to worldwide financial crises have increased the importance of corporate governance. While this situation pushes investors to seek safer environments, it also has led companies to develop effective corporate governance practices. This study aims to explain the relationship between corporate governance and bank performance by presenting evidence from developed and developing countries. For this purpose, 146 commercial banks from 16 countries, 7 developed and 9 developing countries, were included in the sample, and the corporate governance and financial data of these banks for the period 2011-2021 were used in the analysis part of the study. In this study the performance of banks was measured by return on assets (ROA) and return on equity (ROE). The effects of various corporate governance variables on bank performance indicators were analyzed with multidimensional panel data models. The results obtained from the analysis show that the performances of banks in developed and developing countries are affected differently by different corporate governance variables.