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Article
Publication date: 17 April 2023

Muhammad Athar, Sumayya Chughtai and Abdul Rashid

The aim of this study is to understand how board structure, size of audit committee (AC), gender diversity and ownership structure influence banks’ performance in Pakistan. This…

Abstract

Purpose

The aim of this study is to understand how board structure, size of audit committee (AC), gender diversity and ownership structure influence banks’ performance in Pakistan. This study also aims to examine how various dimensions of governance differently affect the different measures of bank performance.

Design/methodology/approach

This study used panel estimation techniques to quantify the impact of various elements of corporate governance on bank performance by taking annual data of 19 Pakistani banks for the period 2013–2020. The corporate governance is measured by board size, CEO duality, AC size, ownership structure and gender diversity. To get the robust results, this study measures bank performance by considering different indicators, namely, return on assets, earning per share, technical efficiency (TE) and total factor productivity. The empirical investigation is based on several well-known and well-accepted governance theories such as the agency theory, the stewardship theory, the tokenism/critical mass theory and the information asymmetry theory.

Findings

The findings of the study reveal that the size of board and ACs both significantly improve profitability and productivity, whereas they decrease TE. Further, the findings suggest that most of the indicators of gender diversity significantly deteriorate the performance of banks. However, ownership structure significantly improves banks’ earnings per share and TE. This study further illustrates that CEO’s duality does not have any significant impact on bank performance. This finding holds true for all the performance measures considered for this study.

Practical implications

The findings are of great importance to various stakeholders, especially to policymakers to know about the factors influencing different measures of performance. Specifically, based on these findings, they can devise the result-oriented strategies to enhance the financial and real performance of banks. The findings also suggest that both investors and owners should take into consideration the governance indicators while evaluating banks’ performance by using accounting, market-based, efficiency and productivity measures.

Originality/value

This research adds to the vast body of existing knowledge about the effectiveness of corporate governance by investigating how the different dimensions of corporate governance and gender diversity influence bank performance in a developing country, namely, Pakistan. Further, this study elaborates the domestic rules/regulations, governance theories and governance framework and practices and tries to link the empirical findings with them for better understanding the role of governance in determining the performance of the banking sector of Pakistan.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 24 October 2023

Remya Lathabhavan and Sukhpreet Kaur

The present study intends to study the role of green transformational leadership in promoting green employee behaviour via green employee creativity. The study will draw its…

Abstract

Purpose

The present study intends to study the role of green transformational leadership in promoting green employee behaviour via green employee creativity. The study will draw its foundation from resource-based view and social exchange theory, thereby providing theoretical underpinning to explore the relationship between leadership, creativity and green behaviour.

Design/methodology/approach

A survey questionnaire was prepared to collect data to examine the relationship among the variables. Responses of 82 human resource (HR) managers and 488 employees of Indian Information Technology/Information Technology Enabled Services (IT/ITES) firms were used for the study. A 2-1-1 multi-level structural equation modelling (ML-SEM) was performed using Mplus version 8.6 software.

Findings

The study reveals significant and positive association for first three hypotheses, i.e. the direct relationship between green transformational leadership, green employee creativity and green employee behaviour. However, the fourth hypothesis is partially supported. Green employee creativity partially mediates the direct relationship between green transformational leadership and green employee behaviour.

Originality/value

By examining how green transformational leadership influences green employee behaviour through the interaction of creativity, the research offers a novel contribution to the field of sustainable organizational practices, enhancing the understanding of leadership, creativity and environmental commitment. The present research addresses pressing societal issues, contributes to more environmentally responsible practices and enhances the understanding of leadership and creativity in today's socially conscious world. Such a holistic examination of these interconnected factors can lead to actionable strategies for organizations to navigate the challenges of environmental responsibility in a rapidly changing world.

Details

Leadership & Organization Development Journal, vol. 44 no. 8
Type: Research Article
ISSN: 0143-7739

Keywords

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