Corporate Governance and Corporate Performance in the Banking Sector

Running Head: ANNOTATED BIBLIOGRAPHY
Annotated Bibliography
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Author Note

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Introduction
In the corporate world, a manager’s behavior can leave huge impact on the performance
of the employees. Hence, corporate governance is a way of controlling the ownership
separation. The responsibility of corporate governance is to separate the roles, channels of
communication, boards of directors, the CEO which handles the operations in the workplace. In
these terms, the performance in a corporate sector can be highly influenced by the corporate
governance. This particular paper will present five articles associated to a vast corporate sector
that is the banking sector, through which the theories and practices related to corporate
governance and corporate performance will be explored.
Aguilera, R.V., Judge, W.Q. and Terjesen, S.A., 2018. Corporate governance
deviance. Academy of Management Review, 43(1), pp.87-109.
The primary purpose of the authors in this article is to develop a clear concept of corporate
governance deviance. It also explores the question of why, how and when a particular firm
adopts the practices of governance which do not align to the prevailing logic of governance. The
authors suggest a type of middle range theory that is associated with the antecedents of the
literature of the corporate governance deviance. The authors also draw on the institutional theory
along with the entrepreneurship literature. The man argument of the paper hovers around the
topic of discretion in the corporate governance practices. The findings of the article suggest that
by adopting a deviant corporate governance practices can regulate the environment of a firm’s
capacity of corporate governance. The article is based on secondary data collection and
thematically analyses the collected data. It concludes with an advanced typology of corporate

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governance deviance founded on a firm’s entrepreneurial identity. As a limitation of the article, it
can be said that it lacks the most recent updates on the mentioned topics.
De Haan, J. and Vlahu, R., 2016. Corporate governance of banks: A
survey. Journal of Economic Surveys, 30(2), pp.228-277.
The aim of the paper is to review the existing empirical literature regarding the methods of
corporate governance on the banking corporate sector. The authors have started by highlighting
the basic differences between the non-financial firms and banks having focused more on the
three characteristics which make the bank special. These are the capital structure, the regulations
and the opacity of the business structure. The three governance mechanisms are also reviewed
such as ownership structures, boards and executive compensation. The data collection and data
analysis are based secondary data collection. The method is the qualitative research method. The
findings suggest that few empirical regularities evident in the non –financial institutions are not
applicable for the banks. Hence, there is no clear conclusive result that is the limitation of the
study. However, the potential explanation of the mixed results is discussed in the article.
Qian, M. and Yeung, B.Y., 2015. Bank financing and corporate
governance. Journal of Corporate Finance, 32, pp.258-270.
This particular article aims at exploring the bank monitoring and which improves the corporate
governance. This paper delineates that the inefficiencies in the performance of banking can
efficiently reduce the disciplinary power of the equity capital market. Specifically, the article
shows that in such an environment, where the banking sectors is controlled by the hollowed
state-controlled banks, a firm’s bank loan access is positively connected with the shareholders’
tunneling control. Companies with the higher rates of tunneling can persistently receive