|Abstract:||In our doctoral dissertation we studied corporate governance and the impact of corporate governance on bank performance in eight countries from Central and Eastern Europe (i.e. the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia and Slovenia) in the time period from 2005 to 2013. To obtain the answer to our main research question, we formulated four research hypotheses. The first three hypotheses addressed the impact of the ownership structure, the composition of the supervisory boards and the management boards as well as the size of banks on corporate governance. Our first hypothesis consisted of three partial hypotheses. That is, when considering the impact of the ownership structure on corporate governance, our analysis focused on the influence of ownership concentration, of foreign ownership and of state ownership on corporate governance (i.e. three partial hypotheses). The second hypothesis referred to the study of the impact of the composition of supervisory boards and management boards on corporate governance, while the third hypothesis addressed the study of the impact of the size of banks on corporate governance. The fourth hypothesis related to the study of the impact of corporate governance on bank performance. Regarding the ownership structure of a bank, our analysis led us to the conclusion that both the concentration of ownership and foreign ownership mainly have a positive impact on corporate governance, while the impact of state ownership on corporate governance is not verified. We also noted that the composition of supervisory boards and management boards as well as the size of banks have a positive influence on corporate governance. When investigating the impact of corporate governance on bank performance, we identified a limited impact on the analysed banks' performance, especially when the latter was measured by return on average assets and return on average equity. The examination of the impact on net interest income showed that the impact on net interest income is more statistically significant. The results we obtained varied considerably between countries. For most countries (except for Estonia and Latvia), corporate governance was found to have a positive impact on banks' performance measured by net interest income. The observed effect of corporate governance on the return on average assets and return on average equity was mainly negative. In addition to the corporate governance index, which was used as the independent variable, we were alternately using other independent variables as well, i.e. the growth rate of GDP per capita, the rule of law, government effectiveness, and the presence of a financial crisis. Based on the analysis performed and the results obtained, we found that the impact of growth in GDP per capita was positive and statistically significant on the ROAA and ROAE in most of the countries and it explained additional variability of the performance of banks. In some countries, the rule of law provisions had a positive impact on banks' performance while in others this impact was negative. The impact of government effectiveness on the three performance indicators was not one sighted and was mostly not statistically significant for most of the countries. The presence of the financial crisis in most of the countries had a negative impact on banks’ performance (which was statistically significant in some countries), which is in line with the expectations that banks perform worse during a crisis.
Future research should focus on a detailed study of substantive and qualitative aspects of corporate governance. It would be worth establishing a common and comprehensive measurement instrument and a set of key governance indicators that would allow for a qualitative comparison of the data and results between years, countries and different types of business entities. It would also be worth including additional variables and other measurements of bank performance.|