THE IMPACT OF CORPORATE GOVERNANCE AND ITS CONSEQUENCES ON PROTECTING THE BANK’S ASSETS: EMPIRICAL EVIDENCE FROM KOSOVO BANKS

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Esat A. Durguti
Emine Q. Gashi

Abstract

This study aims to analyze the relationships between corporate governance instruments on the wealth of financial intermediaries in wide-ranging. The data employed in this study are secondary data from nine (9) commercial banks and covered the years 2013-2020. The approach used in data processing is a 2SLS estimation and multilevel mixed-effects for the dependent variable natural logarithm of total assets. The results provided by the econometric analysis show that board size, sovereign committees, Net Interest Margin (NIM), Non-Performing Loans (NPL’s), and equity to liabilities have an important impact on the protection of the assets of financial institutions. While surprising results have been generated in the composition of the board structure in terms of gender diversity, they have turned out to be insignificant. The originality and value of this study lie in the approach of including the characteristics of the board, as well as the combination of some financial indicators different from previous studies, which makes more comprehensive the study of the impact of board composition on increasing the wealth of banks.

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How to Cite
Durguti, E. A., & Gashi, E. Q. (2022). THE IMPACT OF CORPORATE GOVERNANCE AND ITS CONSEQUENCES ON PROTECTING THE BANK’S ASSETS: EMPIRICAL EVIDENCE FROM KOSOVO BANKS. Journal of Liberty and International Affairs, 8(1), 34-50. https://doi.org/10.47305/JLIA2281034d
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Author Biographies

Esat A. Durguti, University “Isa Boletini”, Faculty of Economy - Mitrovica, Kosovo

Esat A. DURGUTI completed his doctoral studies at the Faculty of Economics, at the University of Tirana in the Department of Finance. He started his professional career within the Faculty of Economics, at the University of Prishtina as a demonstrator from 2000-2002, on March 1, 2002, he started working at the Central Bank of Kosovo until September 2005, then continuing in commercial banks. In March 2009, he started working as a Lecturer within the College of International Management - GLOBUS. On November 23, 2016, he was elected to the academic title Assistant Professor PhD. for the subjects: Financial Management, Financial Markets, and Institutions, Taxes and Corporations as well as Risk Management and Insurance. On November 27, 2020, he was elected to the academic titleAssociate Profesor PhD. for the subjects: Financial Management, Financial Markets and Institutions, Financial Accounting, Tax Accounting, and Risk Management and Insurance. The author has so far has published a considerable number of scientific papers in the financial field indexed in Scopus and Web of Sciencewith international review.

Emine Q. Gashi, Economic and Education Consulting - Prishtina, Kosovo

Emine Gashi completed her Master's studies at the Faculty of Economics, at the College for International Management.She started her professional career in the research process in 2016, at the Economic and Education –E&E Consulting. Mrs. Gashi has advanced experience in the field of research and specializes in data processing in the field of financial econometrics. She has a considerable number of scientific publications and participation in conferenceswith international reviews, mainly in the field of finance.