Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran

Bita Mashayekhi; Alemeh Yazdanian; Farzaneh Jalali

doi:doi:10.11648/j.ijber.20140302.18

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Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran

Bita Mashayekhi, Alemeh Yazdanian, Farzaneh Jalali

Published in International Journal of Business and Economics Research (Volume 3, Issue 2)

Received: 15 April 2014 Accepted: 8 May 2014 Published: 20 May 2014

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Abstract

Given the vital role of banks and other financial institutions in financial and economic stability, and also their great vulnerability to the potential imperfections of corporate governance and the need to maintain the depositors' funds and the stakeholders’ interests, the issue of corporate governance and eliminating its weaknesses and failures are extremely important in banking industry. In recent financial scandals and economic crises which banks and other financial institutions have had a leading role because of malfunctioning of their corporate governance mechanisms. Furthermore, in 2011, the occurrence of a massive financial embezzlement and existence of enormous deferred bank accounts in Iran banking system implies that there is a serious failure in banks' corporate governance for the experts in this field.Therefore this study attempts to prepare information about the current state of corporate governance in Iran banks and compares it with that of prosperous big banks in other parts of the world. Additionally, it is going to investigate the weak points of corporate governance in Iran banks in order to present an appropriate model for them. It also should be noted that we review all available related documents in Iran banks and interview the managers and experts to obtain valid feedbacks in this regard. Then, we review successful and unsuccessful experiences of famous international banks such as Bank of America, Toronto-Dominion Bank, J. P. Morgan, and HSBC, and their corporate governance structures to extract and model them. By comparing this model with those belonging to Iran banks we can realize almost any weakness existing in Iran banks. Finally we suggest an appropriate model for Iran banks to improve the efficiency and effectiveness of the mechanism of their corporate governance.

Published in	International Journal of Business and Economics Research (Volume 3, Issue 2)
DOI	10.11648/j.ijber.20140302.18
Page(s)	108-117
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Corporate Governance, Banking Industry, Iranian Banks, Model for Corporate Governance of Banks, Big International Banks, Financial Crisis

References

[1]	Alexander, Kern, “Corporate Governance and Banking Regulation”, CERF Research Program in International Financial Regulation, 2004.
[2]	Basel Committee on Banking Supervision, “Principles for enhancing corporate governance”, 2010, 2006, 1998.
[3]	Kirkpatrick, Grant, “The Corporate Governance Lessons from the Financial Crisis”, Financial Market Trends, 2009.
[4]	Marcinkowska, Monika, “Corporate Governance in Banks: Problems and Remedies”, National Science Centre, 2012.
[5]	Mehran, Hamid, Morrison, Alan, Shapiro, Joel, “Corporate Governance and Banks: What Have We Learned from the Financial Crisis?” Federal Reserve Bank of New York Staff Reports, no. 502, 2011.
[6]	Mülbert, Peter O, “Corporate Governance of Banks after the Financial Crisis: Theory, Evidence, Reforms”. http://ssrn.com. 2010
[7]	Rezaee, Zabi, “Corporate Governance and Ethics”, Wiley, 2008.

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APA Style

Bita Mashayekhi, Alemeh Yazdanian, Farzaneh Jalali. (2014). Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran. International Journal of Business and Economics Research, 3(2), 108-117. https://doi.org/10.11648/j.ijber.20140302.18

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ACS Style

Bita Mashayekhi; Alemeh Yazdanian; Farzaneh Jalali. Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran. Int. J. Bus. Econ. Res. 2014, 3(2), 108-117. doi: 10.11648/j.ijber.20140302.18

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AMA Style

Bita Mashayekhi, Alemeh Yazdanian, Farzaneh Jalali. Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran. Int J Bus Econ Res. 2014;3(2):108-117. doi: 10.11648/j.ijber.20140302.18

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@article{10.11648/j.ijber.20140302.18,
  author = {Bita Mashayekhi and Alemeh Yazdanian and Farzaneh Jalali},
  title = {Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran},
  journal = {International Journal of Business and Economics Research},
  volume = {3},
  number = {2},
  pages = {108-117},
  doi = {10.11648/j.ijber.20140302.18},
  url = {https://doi.org/10.11648/j.ijber.20140302.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20140302.18},
  abstract = {Given the vital role of banks and other financial institutions in financial and economic stability, and also their great vulnerability to the potential imperfections of corporate governance and the need to maintain the depositors' funds and the stakeholders’ interests, the issue of corporate governance and eliminating its weaknesses and failures are extremely important in banking industry. In recent financial scandals and economic crises which banks and other financial institutions have had a leading role because of malfunctioning of their corporate governance mechanisms. Furthermore, in 2011, the occurrence of a massive financial embezzlement and existence of enormous deferred bank accounts in Iran banking system implies that there is a serious failure in banks' corporate governance for the experts in this field.Therefore this study attempts to prepare information about the current state of corporate governance in Iran banks and compares it with that of prosperous big banks in other parts of the world. Additionally, it is going to investigate the weak points of corporate governance in Iran banks in order to present an appropriate model for them. It also should be noted that we review all available related documents in Iran banks and interview the managers and experts to obtain valid feedbacks in this regard. Then, we review successful and unsuccessful experiences of famous international banks such as Bank of America, Toronto-Dominion Bank, J. P. Morgan, and HSBC, and their corporate governance structures to extract and model them. By comparing this model with those belonging to Iran banks we can realize almost any weakness existing in Iran banks. Finally we suggest an appropriate model for Iran banks to improve the efficiency and effectiveness of the mechanism of their corporate governance.},
 year = {2014}
}

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TY  - JOUR
T1  - Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran
AU  - Bita Mashayekhi
AU  - Alemeh Yazdanian
AU  - Farzaneh Jalali
Y1  - 2014/05/20
PY  - 2014
N1  - https://doi.org/10.11648/j.ijber.20140302.18
DO  - 10.11648/j.ijber.20140302.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 108
EP  - 117
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20140302.18
AB  - Given the vital role of banks and other financial institutions in financial and economic stability, and also their great vulnerability to the potential imperfections of corporate governance and the need to maintain the depositors' funds and the stakeholders’ interests, the issue of corporate governance and eliminating its weaknesses and failures are extremely important in banking industry. In recent financial scandals and economic crises which banks and other financial institutions have had a leading role because of malfunctioning of their corporate governance mechanisms. Furthermore, in 2011, the occurrence of a massive financial embezzlement and existence of enormous deferred bank accounts in Iran banking system implies that there is a serious failure in banks' corporate governance for the experts in this field.Therefore this study attempts to prepare information about the current state of corporate governance in Iran banks and compares it with that of prosperous big banks in other parts of the world. Additionally, it is going to investigate the weak points of corporate governance in Iran banks in order to present an appropriate model for them. It also should be noted that we review all available related documents in Iran banks and interview the managers and experts to obtain valid feedbacks in this regard. Then, we review successful and unsuccessful experiences of famous international banks such as Bank of America, Toronto-Dominion Bank, J. P. Morgan, and HSBC, and their corporate governance structures to extract and model them. By comparing this model with those belonging to Iran banks we can realize almost any weakness existing in Iran banks. Finally we suggest an appropriate model for Iran banks to improve the efficiency and effectiveness of the mechanism of their corporate governance.
VL  - 3
IS  - 2
ER  -

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Author Information

Bita Mashayekhi

Accounting Department, Faculty of Management, University of Tehran, Tehran, Iran
Alemeh Yazdanian

Accounting Department, Faculty of Management, University of Tehran, Tehran, Iran
Farzaneh Jalali

Accounting Department, Faculty of Management, University of Tehran, Tehran, Iran

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APA Style

Bita Mashayekhi, Alemeh Yazdanian, Farzaneh Jalali. (2014). Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran. International Journal of Business and Economics Research, 3(2), 108-117. https://doi.org/10.11648/j.ijber.20140302.18

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ACS Style

Bita Mashayekhi; Alemeh Yazdanian; Farzaneh Jalali. Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran. Int. J. Bus. Econ. Res. 2014, 3(2), 108-117. doi: 10.11648/j.ijber.20140302.18

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AMA Style

Bita Mashayekhi, Alemeh Yazdanian, Farzaneh Jalali. Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran. Int J Bus Econ Res. 2014;3(2):108-117. doi: 10.11648/j.ijber.20140302.18

Copy | Download

@article{10.11648/j.ijber.20140302.18,
  author = {Bita Mashayekhi and Alemeh Yazdanian and Farzaneh Jalali},
  title = {Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran},
  journal = {International Journal of Business and Economics Research},
  volume = {3},
  number = {2},
  pages = {108-117},
  doi = {10.11648/j.ijber.20140302.18},
  url = {https://doi.org/10.11648/j.ijber.20140302.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20140302.18},
  abstract = {Given the vital role of banks and other financial institutions in financial and economic stability, and also their great vulnerability to the potential imperfections of corporate governance and the need to maintain the depositors' funds and the stakeholders’ interests, the issue of corporate governance and eliminating its weaknesses and failures are extremely important in banking industry. In recent financial scandals and economic crises which banks and other financial institutions have had a leading role because of malfunctioning of their corporate governance mechanisms. Furthermore, in 2011, the occurrence of a massive financial embezzlement and existence of enormous deferred bank accounts in Iran banking system implies that there is a serious failure in banks' corporate governance for the experts in this field.Therefore this study attempts to prepare information about the current state of corporate governance in Iran banks and compares it with that of prosperous big banks in other parts of the world. Additionally, it is going to investigate the weak points of corporate governance in Iran banks in order to present an appropriate model for them. It also should be noted that we review all available related documents in Iran banks and interview the managers and experts to obtain valid feedbacks in this regard. Then, we review successful and unsuccessful experiences of famous international banks such as Bank of America, Toronto-Dominion Bank, J. P. Morgan, and HSBC, and their corporate governance structures to extract and model them. By comparing this model with those belonging to Iran banks we can realize almost any weakness existing in Iran banks. Finally we suggest an appropriate model for Iran banks to improve the efficiency and effectiveness of the mechanism of their corporate governance.},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran
AU  - Bita Mashayekhi
AU  - Alemeh Yazdanian
AU  - Farzaneh Jalali
Y1  - 2014/05/20
PY  - 2014
N1  - https://doi.org/10.11648/j.ijber.20140302.18
DO  - 10.11648/j.ijber.20140302.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 108
EP  - 117
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20140302.18
AB  - Given the vital role of banks and other financial institutions in financial and economic stability, and also their great vulnerability to the potential imperfections of corporate governance and the need to maintain the depositors' funds and the stakeholders’ interests, the issue of corporate governance and eliminating its weaknesses and failures are extremely important in banking industry. In recent financial scandals and economic crises which banks and other financial institutions have had a leading role because of malfunctioning of their corporate governance mechanisms. Furthermore, in 2011, the occurrence of a massive financial embezzlement and existence of enormous deferred bank accounts in Iran banking system implies that there is a serious failure in banks' corporate governance for the experts in this field.Therefore this study attempts to prepare information about the current state of corporate governance in Iran banks and compares it with that of prosperous big banks in other parts of the world. Additionally, it is going to investigate the weak points of corporate governance in Iran banks in order to present an appropriate model for them. It also should be noted that we review all available related documents in Iran banks and interview the managers and experts to obtain valid feedbacks in this regard. Then, we review successful and unsuccessful experiences of famous international banks such as Bank of America, Toronto-Dominion Bank, J. P. Morgan, and HSBC, and their corporate governance structures to extract and model them. By comparing this model with those belonging to Iran banks we can realize almost any weakness existing in Iran banks. Finally we suggest an appropriate model for Iran banks to improve the efficiency and effectiveness of the mechanism of their corporate governance.
VL  - 3
IS  - 2
ER  -

Copy | Download