Board Composition and Non-Performing Loans among Commercial Banks in Tanzania
نویسندگان
چکیده
Objective – This paper investigates the effect of board composition on non-performing loans (NPLs) for a sample 31 commercial banks in Tanzania.Design/methodology A quantitative study methodology was employed using annual data covering period 2011-2020. The authors used one-step generalised method moments (GMM) approach to estimate percentage growth NPLs Tanzania.Results concludes that number members with financial expertise, size, audit committee, and presence female directors significantly negatively impact bank’s hence aid lowering NPLs. In contrast, an increase lagged NPLs, credit committees, independent directors, meetings, advances deposit ratio increases level which is consistent agency theory.Research Limitations/Implications Inconsistencies reported variables from various databases during afterwards, as well lack some specific years. Shareholders should actively establish good corporate governance (CBs) they own reduce at acceptable rate less than 5%. Also, Central Banks Tanzania encourage CBs implement effective practices by enacting rules regulations To minimize loan losses, authorities impose micro-prudential supervision banks’ lending behavior. Novelty/Originality includes bank size ownership difference system measure effect, usually not case most studies.
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ژورنال
عنوان ژورنال: Journal of accounting research, organization and economics
سال: 2023
ISSN: ['2621-1041']
DOI: https://doi.org/10.24815/jaroe.v6i1.31822