Corporate governance in Spanish savings banks and its relationship with financial and social performance
| Autor: | Patricia Bachiller, Javier Garcia-Lacalle |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Finance
050208 finance business.industry Corporate governance media_common.quotation_subject 05 social sciences Social Welfare Management Science and Operations Research General Business Management and Accounting Competitive advantage 0502 economics and business Corporate social responsibility Customer satisfaction Profitability index Business Social responsibility 050203 business & management Reputation media_common |
| Zdroj: | Zaguán. Repositorio Digital de la Universidad de Zaragoza instname |
| Popis: | PurposeThe purpose of this paper is to present empirical evidence about relationships between the corporate governance (CG) mechanisms of the Spanish savings banks, their financial and social performance and their profitability prior to their collapse.Design/methodology/approachThe authors use a structural equation model (SEM), taking the return on assets as the dependent variable, and CG, corporate social responsibility and efficiency as explanatory constructs. SEM methodology provides interesting features that allows a better definition of some organisational characteristics.FindingsResults indicate that CG characteristics, including the politicisation of governance bodies, did not affect the financial performance. The size of the board of directors had a significant influence on social responsibility. In addition, results suggest that the whole board focused on social issues, whereas non-executive members were less concerned about economic issues. Greater money allocation to social welfare programmes resulted in higher profitability, which can be explained by competitive advantages, reputation and customer satisfaction.Social implicationsNowadays, some political parties demand either for the creation of a public banking sector or banks with social goals. This paper provides interesting insights into the debate.Originality/valueThe influence of personal attributes of board members on performance needs to be analysed in greater depth in the non-profit sector. The SEM methodology allows us to include some board attributes and performance dimensions in a better way than with other methodologies. |
| Databáze: | OpenAIRE |
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