Corporate Governance and banking performance in Portugal - The impact of variable-RAC_IMP (Impairments)

Sep 18, 2026

Uploaded by Mimi

Effective corporate governance practices are essential for building and sustaining societal trust in the banking system, supporting the smooth functioning of the financial sector and the economy. The study analyzes how governance, structure, and macroeconomic variables affect the economic and financial performance of Portuguese banks. Using a risk measure to test the link between corporate governance and bank risk-taking, measured via the Impairment Ratio for Credit to Customers relative to assets, the research applies student t tests to identify which variables are excluded and which are retained.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages7

Reading Time18 min

AccessFree to download

ARTICLE INFO

ABSTRACT

INTRODUCTION

LITERATURE REVIEW

Journal of Information Systems Engineering and Management 2022, 7(4), 18121 e-ISSN: 2468-4376 [https://www.jisem-journal.com/](https://www.jisem-journal.com/ Research Article)[ Research Article](https://www.jisem-journal.com/ Research Article) | Corporate Governance and banking performance in Portugal: The impact of variable-RAC_IMP
(Impairments)
Adalmiro Andrade Pereira 1 *, Ângela Vaz2
1 Polytechnic of Porto / ISCAP, Portugal
2 CEOS, Portugal
*[Corresponding Author:](Corresponding Author: adalmiropereira@mail.telepac.pt)[ ](Corresponding Author: adalmiropereira@mail.telepac.pt)[adalmiropereira@mail.telepac.pt](Corresponding Author: adalmiropereira@mail.telepac.pt)
Citation: Pereira, A. A., & Vaz, Â . (2022). Corporate Governance and banking performance in Portugal: The impact of variable-RAC_IMP (Impairments). Journal of Information Systems Engineering and Management, 7(4), 18121. [https://doi.org/10.55267/iadt.07.12548](https://doi.org/10.55267/iadt.07.12548) | | | | --- | --- | --- | | ARTICLE INFO | ABSTRACT | | | Received: 11 Sep 2022
Accepted: 17 Oct 2022 | Effective corporate governance practices are essential to achieving and maintaining societal trust in the banking system, which is essential for the smooth functioning of the financial sector and the economy.
Much of the literature associated with Corporate Governance considers, in addition to concepts, the implementation cycle and the corresponding models. Corporate Governance cycles are related to corporate bankruptcies and the negligence of the board of directors, which are more common when a long period of economic expansion is followed by a period of crisis, which demonstrates failures in Corporate Governance. The main objective of the research is to analyze the impact of variables associated with governance, structure, and economy on the economic and financial performance of banking institutions in Portugal. In the model, a risk measure is used to determine whether Corporate Governance has an impact on a bank's risk-taking, the Impairment Ratio for Credit to Customers in relation to Assets. After performing the significance test for each of the variables (student t test), it is possible to determine that the following variables will be excluded: Bank Size (LNAT), Customer Deposits (LNDEP), Interest Rate (TXJUR) . We accept the following variables Corporate Governance (CG); Financial Autonomy (CPAT); Return on Average Assets (ROAA); GDP Rate Variation (TXPIB) and Inflation Rate (TXINF) .
Keywords: Corporate Governance, e-governance, OLS, Banks, Impairments. | | | INTRODUCTION | | | | Effective corporate governance practices are essential to achieving and maintaining societal trust in the banking system, which is essential for the smooth functioning of the financial sector and the economy as a whole. Bad Corporate Governance can contribute to bank failures, which in turn can represent significant costs due to their potential impact on the macroeconomic system. Added to this is the risk of contagion to the entire sector, which may, at the limit, jeopardize the financial system, as was evident in the international financial crisis that began in mid-2007 . In fact, in addition to their responsibilities towards shareholders, banks also have an obligation to answer to their depositors and other recognized stakeholders, | | In Portugal, the IPCG – Instituto Português de Corporate Governance, a private law association, established in 2003, has the mission of “to establish itself as a center of excellence for reflection on matters related to corporate governance, disseminating and debating ideas and concepts on good corporate governance practices and contributing to the strengthening of ethics, accountability and transparency in their application.”(IPCG 2020).
As for the objectives of the study, these allow indicating the main intention of the investigation, corresponding to the final product that is intended to be achieved. T

FAQs

What is the main objective of the research in this paper?

To analyze the impact of variables related to governance, structure, and the economy on the economic and financial performance of banking institutions in Portugal.

How does the paper measure bank risk-taking and impairments?

It uses a risk measure based on the Impairment Ratio for Credit to Customers relative to Assets, to assess whether corporate governance affects bank risk-taking.

Which variables are excluded and which are accepted after significance testing?

After significance tests (student t test), variables excluded include Bank Size (LNAT), Customer Deposits (LNDEP), and Interest Rate (TXJUR). Accepted variables include Corporate Governance (CG), Financial Autonomy (CPAT), Return on Average Assets (ROAA), GDP Rate Variation (TXPIB), and Inflation Rate (TXINF).

Sep 18, 2026

Uploaded by Mimi