Investigating the Relationship between Corporate Governance Model and Its Performance in Iranian Banks

Establishing an efficient corporate governance system in the banking sector and evaluating and ranking them require a comprehensive model that encompasses all mechanisms affecting corporate governance and localized indicators relevant international principles and finally explain the relationships between them. In this research, a model developed in the framework of a systematic thinking is used to examine corporate governance in the Iranian banks. The main objectives of this study are to evaluate the compliance status of 27 banks with the indicators of the corporate governance model and their efficiency and effectiveness, as well as to investigate the relationships between the components of the system. According to obtained results, 47.8 percent of qualitative indicators covered in the current situation of the banks, but there is a gap between full compliance with the model. Based on the results in the performance dimension, private banks scored the highest and state banks scored the lowest. The results show that there is a positive and significant relationship between the dimensions of inputs and processes with the goals, results and performance of banks. Accordingly, by improving the status of input and process indicators, the status of target indicators, results and performance of banks will also improve.