The Effects of the Board on Corporate Performance. Evidence from Cameroon Banks

Abstract

Using a sample of 10 selected banks annual reports covering 2010-2015, this study examines the relationship between corporate governance and performance in Cameroon banking sector. Based on the econometric model, the result indicates that improved performance of the banking sector is not dependent on increasing the number of executive directors and board composition. It shows further that when there are more external board members; performance of banks tends to be worse. The study concludes a need for increase in board size and decrease in board composition as measured by the ratio of outside directors to the total number of directors in order to increase the bank performance.