Nonlinear Effects of Ownership Concentration and Board Structure on Tobin’s Q in Banks

Öz

The performance of banks, which stand out with their financial intermediary role, varies depending on many factors and the importance of corporate governance practices has been emphasized in recent years. The findings show that the performance levels of banks in the current period are positively affected by their previous performance levels. The bank's performance is affected by its board of directors and ownership structure. The relationship between board scale and Tobin q is not linear. It has been determined that the relationship between the ownership right of the large shareholder and Tobin q in banks is not linear. The nonlinear relationship indicates the existence of an optimal level in terms of corporate governance practices. The increase in the ratio of independent and expert members in the board of directors affects the bank performance negatively. Also, it has been determined that the performance of the bank increases in case of duality in the board of directors of the bank. When the financial structure of the bank was evaluated, it was determined that the increase in the bank's non-performing loan ratio decreased the bank's performance.

Anahtar Kelimeler

• Banking
• Board Size
• Tobin's Q
• System GMM

Effets non linéaires de la concentration de la propriété et de la structure du conseil d'administration sur le Q de Tobin dans les banques

Öz

La performance des banques, qui se distinguent par leur rôle d'intermédiaire financier, varie en fonction de nombreux facteurs et l'importance des pratiques de gouvernance d'entreprise a été soulignée ces dernières années. Les résultats montrent que les niveaux de performance des banques au cours de la période actuelle sont positivement affectés par leurs niveaux de performance antérieurs. La performance de la banque est affectée par son conseil d'administration et sa structure de propriété. La relation entre l'échelle de la planche et le Tobin q n'est pas linéaire. Il a été déterminé que la relation entre le droit de propriété du grand actionnaire et Tobin q dans les banques n'est pas linéaire. La relation non linéaire indique l'existence d'un niveau optimal en termes de pratiques de gouvernance d'entreprise. L'augmentation du ratio de membres indépendants et experts au sein du conseil d'administration affecte négativement la performance de la banque. En outre, il a été déterminé que la performance de la banque augmente en cas de dualité au sein du conseil d'administration de la banque. Lors de l'évaluation de la structure financière de la banque, il a été déterminé que l'augmentation du ratio de prêts non performants de la banque diminuait la performance de la banque.

Anahtar Kelimeler

• Bancaire
• taille du conseil d'administration
• Q de Tobin
• Systeme GMM

Bankalarda Sahiplikteki Yoğunlaşma ve Yönetim Kurulu Yapısının Tobin Q Üzerindeki Doğrusal Olmayan Etkileri

Öz

Finansal aracı rolüyle ön plana çıkan bankalarda performans, birçok faktöre bağlı olarak değişmektedir ve son yıllarda kurumsal yönetim uygulamalarının önemine dikkat çekilmektedir. Bu çalışmada bankaların sahiplik yapısı, yönetim kurulunun özellikleri ve performans arasındaki ilişkiler gelişmekte olan ülkelerdeki ticari bankalar açısından araştırılmıştır. Elde edilen bulgular, bankaların cari dönemdeki performans düzeylerinin bir dönem önceki performans düzeylerinden pozitif yönde etkilendiğini göstermiştir. Banka performansı, yönetim kurulu ve sahiplik yapısı bileşiminden etkilenmektedir. Yönetim kurulu ölçeği ile Tobin q arasındaki ilişki doğrusal değildir. Bankalarda büyük ortağın sahiplik hakkı ile Tobin q arasındaki ilişkisinin doğrusal olmadığı saptanmıştır. Doğrusal olmayan ilişki, kurumsal yönetim açısından optimal bir düzeyin varlığına işaret etmektedir. Yönetim kurulundaki bağımsız üye ve uzman üye oranlarının artması banka performansını negatif yönde etkilemektedir. Buna karşın, banka yönetim kurulunda ikilik olması halinde banka performansının arttığı belirlenmiştir. Bankanın finansal yapısı değerlendirildiğinde, bankanın takipteki kredi oranının artmasının banka performansını düşürdüğü saptanmıştır.

Anahtar Kelimeler

• Bankacılık
• Yönetim Kurulu Ölçeği
• Sistem GMM
• Tobin’s Q

Kaynakça

1. Adams, R. B., and Mehran, H. (2012). Bank board structure and performance: evidence for large bank holding companies. Journal of Financial Intermediation, 21(2), 243-267.
2. Almeida, H. V., and Wolfenzon, D. (2006). A theory of pyramidal ownership and family business groups. Journal of Finance, 61(6), 2637-2680.
3. Andres, P. A., and Vallelado, E. (2008). Corporate governance in banking: the role of the board of directors. Journal of Banking and Finance, 32, 2570-2580.
4. Arellano, M., and Bond, S. (1991). Some tests of specification for panel: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58, 277-297.
5. Arellano, M., and Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68, 29- 51.
6. Aytekin, S., ve İbiş, A. (2014). Mülkiyet Yapısının İşletmelerin Finansal Performansı Üzerindeki Etkilerinin Değerlendirilmesi: BIST Metal Eşya, Makine Endeksi (XMESY) Üzerinde Bir Uygulama. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 40, 119-130
7. Bayrakdaroğlu, A. (2010). Mülkiyet Yapısı ve Finansal Performans: İMKB Örneği. Ekonomi Bilimleri Dergisi, 2(2), 11-20.
8. Belhaj, S., and Mateus, C. (2016). Corporate Governance Impact on Bank Performance: Evidence from Europe. Corporate Ownership and Control, 13(4), 583-597.

9. Berle, A., and Means, G. C. (1932). The modern corporation and private property. Macmillan, New York.
10. Bezawada, B. (2020). Corporate Governance Practices and Bank Performance: Evidence from Indian Banks. Indian Journal of Finance and Banking, 4(1), 33-41.
11. Blundell, R., and Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87, 115-143.
12. Claessens, S., Djankov, S., and Lang, L. H. P. (2000). The separation of ownership and control in East Asian Corporations. Journal of Financial Economics, 58, 81-112.
13. Claessens, S., Djankov, S., Fan, J. P. H., and Lang, L. H. P. (2002). Disentangling the incentive and entrenchment effects of large shareholdings. Journal of Finance, 57(6), 2741-2771.
14. Cornett, M. M., McNutt, J. J., and Tehranian, H. (2009). Corporate governance and earnings management at large U.S. bank holding companies. Journal of Corporate Finance, 15, 412-430.
15. Demsetz, H. (1983). The structure of ownership and the theory of the firm. Journal of Law and Economics, 26, 375–390.
16. Demsetz, H., and Lehn, K. (1985). The structure of corporate ownership: causes and consequences. Journal of Political Economy, 93, 1155-1177.
17. Demsetz, H., and Villalonga, B. (2001). Ownership structure and corporate performance. Journal of Corporate Finance, 7, 209–233.
18. Doğan, M. ve Topal, Y. (2015). Sahiplik Yapısının Firma Performansı Üzerine Etkisi: Türkiye Örneği. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 20(4), 165 177.
19. Donaldson, L., and Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and share-holder returns. Australian Journal of Management, 16, 49-64.
20. Donaldson, L., and Davis, J. H. (1994). Boards and company performance: research challenges the conventional wisdom. Corporate Governance: An International Review, 2(3), 151-160.
21. Fama, E., and Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 26, 301-326.
22. Fauzi, F., and Locke, S. (2012). Board structure, ownership structure and firm performance: a study of New Zealand listed-firms. Asian Academy of Management Journal of Accounting and Finance, 8(2), 43-67.
23. Finkelstein, S., and D'Aveni, R. A. (1994). CEO duality as a double-edged sword: how boards of directors balance entrenchment avoidance and unity of command. Academy of Management Journal, 37, 1079-1108.
24. Gafoor, A. C. P., Mariappan, V., and Thyagarajan, S. (2018). Board Characteristics and Bank Performance in India. IIMB Management Review, 30, 160-167.
25. Garg, A. K. (2007). Influence of board size and independence on firm performance: A study of Indian companies. Vikalpa, 32(3), 39-60.
26. Gedajlovic, E. R., and Shapiro, D. M. (1998). Management and ownership effects: evidence from five countries. Strategic Management Journal, 19, 533-553.
27. Gençtürk, M. (2003). Finansal Kriz Dönemlerinde İşletmelerin Hisse Yoğunluklarının Performanslarına Etkileri. Süleyman Demirel Üniversitesi İ.İ.B.F. Dergisi, 8(2), 213-251.
28. Griffith, J. M., Fogelberg L., and Weeks, H. S. (2002). CEO ownership, corporate control, and bank performance. Journal of Economics and Finance, 26(2), 170-183.
29. Jensen, M., and Meckling, W. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360.
30. Karkowska, R., and Acedański, J. (2020). The effect of corporate board attributes on bank stability. Portuguese Economic Journal, 19, 99–137.
31. Kapopoulos, P., and Lazaretou, S. (2007). Corporate ownership structure and firm performance: evidence from Greek firms. Corporate Governance, 15(2), 144-158.
32. La Porta, R., Lopez-de-Silanes, F., and Shleifer, A. (1999). Corporate ownership around the world. The Journal of Finance, 54(2), 471-517.
33. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., and Vishny, R. (1998). Law and finance. Journal of Political Economy, 106(6), 1113-1155.
34. Mandacı, P., and Gümüş, G. (2010). Ownership Concentration, Managerial Ownership and Firm Performance: Evidence from Turkey. South East European Journal of Economics and Business, 5(1), 57-66.
35. Marks, S. G. (1999). The separation of ownership and control. Encyclopedia of Law and Economics, Cheltenham: Edward Elgar Publishing, 692-724.
36. Morck, R., Wolfenzon, D., and Yeung, B. (2005). Corporate governance, economic entrenchment, and growth. Journal of Economic Literature, 43, 655-720.
37. Morck, R., Shleifer, A. and Vishny, R. W. (1988). Management Ownership and Market Valuation: An Empirical Analysis. Journal of Financial Economics, 20 (1-2), 293-315.
38. Pathan, S., Skully, M., and Wickramanayake, J. (2007). Board size, independence and performance: An analysis of Thai banks. Asia-Pacific Financial Markets, 3, 211–227.
39. Pathan, S. (2009). Strong boards, CEO power and bank risk-taking. Journal of Banking and Finance, 33, 1340-1350.
40. Pathan, S., and Faff, R. (2013). Does board structure in bank really affect their performance?. Journal of Banking and Finance, 37, 1573-1589.
41. Sarkar, J. and Sarkar, S. (2018). Bank ownership, board characteristics and performance: Evidence from commercial banks in India. International Journal of Financial Studies, 6(1), 1-30.
42. Shao, L. (2019). Dynamic study of corporate governance structure and firm performance in China: Evidence from 2001-2015. Chinese Management Studies, 13(2), 299-317.
43. Shleifer, A. and Vishny, R. W. (1997). A survey of corporate governance. Journal of Finance, 52, 737-783.
44. Staikouras, P. K., Staikouras, C. K., and Agoraki, M. K. (2007). The effect of board size and composition on European bank performance. European Journal of Law Economics, 23(1), 1-27.
45. Şamiloğlu, F., ve Ünlü, U. (2010). Sahiplik Yapısı ve Firma Performansı Arasındaki İlişki: İMKB 100 Endeksi Firmaları Üzerine Bir Uygulama. Muhasebe ve Finansman Dergisi, 46, 66-73.
46. Vintila, G., and Gherghina, S. C. (2013). Board of directors independence and firm value: empirical evidence based on the Bucharest Stock Exchange listed companies. International Journal of Economics and Financial Issues, 3(4), 885-900.
47. Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40, 185-211.
48. Yılgör, A., ve Yücel, E. (2012). İşletmelerin Sahiplik Yapısının İncelenmesi: Sahiplik Ve Kontrol Ayrımı Konusunda Çıkarımlar. Uluslararası Yönetim İktisat ve İşletme Dergisi, 8(16), 41-57.
49. Yurtoğlu, B. (2000). Ownership, Control and Performance of Turkish Listed Firms. Empirica, 27(2), 193-222.
50. Yücel, E. (2016). Kurumsal yönetim ve firma performansı: Gelişmiş ve gelişmekte olan ülkelerden kanıtlar. Organizasyon ve Yönetim Bilimleri Dergisi, 8(2), 27-41.