Impact of corporate governance and intellectual capital on financial performance A Study of commercial banks in India

Abstract

This study aimed to investigate the Impact of Corporate Governance and Intellectual Capital on Financial Performance: A study of Com-mercial Banks in India. The corporate governance factors consisted of the number of board of directors, the number of independent directors, the number of woman s on the board, the number of audit committee directors, the number of risk management committee directors, the number of fraud management committee directors, the frequency of board meetings, the frequency of audit committee meetings, the fre-quency of risk management committee meetings, the frequency of fraud management committee meetings and the number of banks with separate chairman and CEO. Intellectual capital efficiency has been es-timated using Value Added Intellectual Capital (VAIC) methodology. The financial performance has using estimated using Return on Equity (ROE). The population of the study is Commercial scheduled banks listed at the national stock exchange (NSE) India in 2010 2020. The sampling method was done by using purposive sampling. The data for the study is mainly collected from secondary sources. The data has be extracted from CMIE (Centre for Monitoring Indian Economy) data-base. Financial statements from the annual reports of the banks (RBI Data Warehouse, IBS annual reports and banks websites). The data collected is arranged to form a panel, and then analyzed using multiple regression. newlineThe result of this study revealed that the CEO Duality, independent di-rectors, board size, and fraud management committee meetings had a newlinexx newlinepositive significant impact on financial performance. Moreover, Intel-lectual capital had a significant impact on financial performance of the banks. Structural capital efficiency (SCE) and employed capital effi-ciency (ECE) had significant impact on financial performance. CEO Duality, independent directors, board size, frequency board meetings, audit committee mattings, and fraud management committee mattings had significant impact on intellectual capital perfor