Corporate Governance and Social Responsibility in Banking and Insurance

Ing. Nino Khazalia

Master's thesis

Abstract:

This thesis examines the effects corporate governance and social responsibility on financial performance of banks and insurance companies. For this purpose, we have conducted econometric analysis of panel data and employed four different measures of financial performance, namely, Tobin’s Q, Market Capitalization to Book Value, Return on Common Equity (ROE) and Return on Assets (ROA). The thesis is divided into three chapters. First two chapters provide introduction to the concepts of corporate governance and corporate social responsibility and discuss existing literature with respect to their impact in financial institutions. The last chapter introduces the dataset, methodology used to estimate relations under consideration and discusses corresponding empirical results. Our findings indicate that corporate governance and social responsibility factors significantly influence financial performance in both sectors. Furthermore, we document that market performance and accounting-based profitability measures are affected by relatively different sets of indicators. Some of the most prominent factors include: board independence, frequency of board meetings and United Nations (UN) Global Compact signatory.

Keywords

Corporate governance, corporate social responsibility (CSR), econometric analysis, financial performance

Language used: English

Date on which the thesis was submitted / produced: 16. 5. 2016

Thesis defence

• Date of defence: 20. 6. 2016
• Supervisor: Oleg Deev
• Reader: Ing. Dagmar Linnertová, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Finance and Accounting / Finance (eng.)