:: Volume 12, Issue 1 (Winter 2017) ::
J. Mon. Ec. 2017, 12(1): 55-71 Back to browse issues page
Introducing a Model to Measure the Corporate Governance Index in Usury-Free Banking
Mehdi Ghasemi Ali Abadi 1, Abbas Shakeri1, Ali Nassiri Aghdam1
1- Faculty of Economics, Allameh Tabataba'i University
Abstract:   (224 Views)
Good implementation of corporate governance principles is considered as an important component for stability and soundness of a financial institution. An extensive body of literature has reviewed the effects of corporate governance on the performance of corporations. The majority of these studies have found more corporate values for implementing the principles. Therefore, the assessment of compliance with corporate governance principles is a critical factor for external inspectors to ensure long-term sustainability of any economic organization. Based on these, this research aims to introduce a mechanism for assessing corporate governance in Iranian banks. This mechanism helps to calculate points for ranking of any banks compared to other banks and with regard to the compliance with four corporate governance principles: accountability, responsibility, transparency and fairness. To this end, and based on corporate governance principles, a set of measurements, elements and sub-indices have been introduced that some of them are estimated. The value domain for each of sub-indices is determined with respect to the published information by the bank. This paper has introduced 153 sub-indices, 17 elements and 3 measures that explain corporate governance. These are all valued and altogether in the form of a suitable model, make possible to calculate the Corporate Governance Index (CGI) in a usury-free bank.
Keywords: Corporate Governance Index, Assessment, Typical Bank, Usury-Free Banking
Full-Text [PDF 191 kb]   (120 Downloads)    
Type of Study: Research | Subject: Monetary Economics
Received: 2018/06/10 | Accepted: 2018/09/4 | Published: 2019/03/11


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Volume 12, Issue 1 (Winter 2017) Back to browse issues page