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Please use this identifier to cite or link to this item: http://repository.iitr.ac.in/handle/123456789/8748
Title: A non-parametric index of corporate governance in the banking industry: An application to Indian data
Authors: Gulati, Rachita
Kattumuri R.
Kumar S.
Published in: Socio-Economic Planning Sciences
Abstract: This paper presents a methodological framework for constructing a non-parametric index of corporate governance for banks. The index is constructed by aggregating six distinct dimensional indices capturing different dimensions of corporate governance, namely board effectiveness, audit function, risk management, remuneration, shareholder rights and information, and disclosure and transparency. For aggregation, a tailored version of data envelopment analysis (DEA) approach which is popularly known as constrained ‘Benefit-of-the-Doubt (BoD)’ model is employed. This approach is unique and distinctive in the sense that it requires no a priori knowledge of weights, and assigns endogenous weights obtained from actual data to individual dimensions of bank governance in order to construct a composite index of corporate governance. This methodological framework has illustrated by applying it for a data set of 40 Indian banks operating in the year 2017. The data set has been compiled using 58 governance regulations as defined by relevant jurisdictions. © 2019 Elsevier Ltd
Citation: Socio-Economic Planning Sciences (2020), 70(): -
URI: https://doi.org/10.1016/j.seps.2019.03.008
http://repository.iitr.ac.in/handle/123456789/8748
Issue Date: 2020
Publisher: Elsevier Ltd
Keywords: Benefit-of-the-doubt model
Composite indicators
Corporate governance index
Data envelopment analysis
Indian banks
ISSN: 380121
Author Scopus IDs: 26221190300
6507974839
57206762527
Author Affiliations: Gulati, R., Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Roorkee, Uttarakhand, India
Kattumuri, R., India Observatory, London School of Economics and Political Science, London, United Kingdom
Kumar, S., Faculty of Economics, South Asian University, New Delhi, India
Corresponding Author: Kumar, S.; Faculty of Economics, South Asian UniversityIndia; email: skumar@econ.sau.ac.in
Appears in Collections:Journal Publications [HS]

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