Board Governance Mechanisms and Liquidity Creation: A Theoretical Framework
Mousa, ALI K.A. and Hassan, Nor Laili and Pirzada, Kashan (2022) Board Governance Mechanisms and Liquidity Creation: A Theoretical Framework. GATR Journal of Finance and Banking Review, 7 (2). pp. 122-134. ISSN 2636-9176
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Abstract
Objective - The highly concentrated ownership structure, lack of quality information, and weak regulatory environments caused imbalances in the movement of cash flows and thereby put the liquidity levels of Gulf Cooperation Council (GCC) banks on a downward trend. This prompted policymakers in the GCC region to modify their Corporate Governance (C.G.) codes to boost the financial position of the GCC banking industry as liquidity providers and minimize systemic risk. Therefore, the purpose of this study is to conceptually investigate the relationship between board governance attributes and liquidity creation in the GCC banking sector.
Methodology – The methodology employed in this study is a review of prior research on bank governance mechanisms and liquidity creation to gather perspective and establish a prediction about the association between board attributes and liquidity creation in the GCC banking industry.
Findings – The study concludes that there is a positive correlation between the analyzed board governance features and the creation of liquidity based on several theories gleaned from a review of prior research.
Novelty – The study evaluates bank liquidity creation and how board attributes influence it.
| Item Type: | Article | ||||||
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| Identification Number: | https://doi.org/10.35609/jfbr.2022.7.2(3) | ||||||
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| Uncontrolled Keywords: | Liquidity Creation, Corporate Governance, Agency Theory, Board Attributes, GCC. | ||||||
| Subjects: | CAH17 - business and management > CAH17-01 - business and management > CAH17-01-07 - finance CAH17 - business and management > CAH17-01 - business and management > CAH17-01-08 - accounting |
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| Divisions: | Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics | ||||||
| Depositing User: | Kashan Pirzada | ||||||
| Date Deposited: | 29 Jul 2024 10:34 | ||||||
| Last Modified: | 29 Jul 2024 10:34 | ||||||
| URI: | https://www.open-access.bcu.ac.uk/id/eprint/15426 |
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