Abstract:
Corporate Governance debates raised seriously in scandals and financial crisis of recent decades in large companies and banks. The focus of this debate is not merely the corporate governance system, and its main function is to preserve the interests of stakeholders. At the macro level, economic efficiency, sustainable growth and financial stability are important effects of the system. Establishing an efficient corporate governance system in the banking system and evaluating and ranking them requires a comprehensive model that encompasses all the internal and external mechanisms affecting corporate governance and localized indices and relevant international principles. In this research, corporate governance in banks has been evaluated via a model developed in the framework of systematic thinking which includes three dimensions 1)Inputs (structures and inputs), 2)Roles and processes, and 3) Outputs (goals, performance and results of them). The main objectives of this study are to evaluate the compliance status of 27 banks with the indicators of corporate governance model and their efficiency and effectiveness, as well as to examine the correlation between the components of corporate governance within the system including inputs, processes and outputs.
According to the results, 47.8% of the qualitative indicators are covered in the current situation of the banks of the country, but there is a significant gap between the full compliance with the model. Based on the results in the performance sector, private banks scored the highest and state banks scored the lowest. The results of evaluating the correlation between the components of corporate governance model showed that there is a positive and significant relationship between the dimensions of inputs and processes with the goals, results and performance of banks. Accordingly, by improving the status of input indicators and the corporate governance model process, the status of target indicators, results and performance of banks will also improve
Machine summary:
In the fourth section, considering the results of data analysis on the status of existing corporate governance systematic indicators of banks will be analyzed the relationship between the dimensions of inputs and the model process with its goals and outcomes and banks' performance.
Table 1 Components and Indicators of Environmental Dimension, The Final Model of Corporate Governance in Iranian banks Components Indicators Cultural system 1- Ethical values 2- Law and regulations 3- Honesty {View the image of this page} Transparency 4- Responsibility{View the image of this page} Accountability 5- Developing and publishing the Code of Ethics and Code of Professional Conduct in the Bank 6- Partnership, Cooperation, and Collective Agreement Legal system 1- Comprehensive corporate governance guidelines for banks 2- Corporate governance requirements are applicable for all banks 3- Modification of corporate governance laws and regulations 4- Considering the interests of other stakeholders in the legal requirements 5- Uniform regulatory law on all banks Political system 1- Democracy and the observance of social freedom 2- Political relations worldwide and internationally Economic system 1- Financing system of the country's economic sectors 2- Efficiency of the country's capital market 3- Role and position of the government in the economy 4- Functioning of the banking system in the economy Regulatory pillars 1- Central Bank of Iran 2- The Audit Organization 3- Central Bank Independence from Government 4- Evaluate Corporate Governance in Banks and Fully Supervise the Implementation of Corporate Governance Policy5- Their competence and determination of management failures, policies and the need for improvement Source: Research Findings.