Banking Efficiency And Corporate Governance

This paper aims to provide an empirical answer to the question whethercorporate governance has any significant impacts on banking efficiency.To this end, the following steps are taken. Firstly, Data EnvelopmentAnalysis (DEA) is employed to evaluate the relative efficiency of banks.Secondly, indicators are selected that properly reflect the effectiveness ofcorporate governance of banks. Finally, in view of insufficient crosssectional data, pooled regression is used to analyze the relationshipbetween banking efficiency and corporate governance. Test results do notshow that corporate governance have a say in banking efficiency.However, changes of banking efficiency over different accounting yearsare statistically significant.