Overview of Paper
This paper is focusing on the relationship between corporate governance and internal controls on the financial performance of financial institutions in The Bahamas. My sample will be publically listed financial institutions listed on the Bahamas International Stock Exchange (BISX) (https://bisxbahamas.com/listings/).
Objective
Please note that only the results section needs to be completed. I will be using secondary data in the form of annual reports for the companies which are attached. For some of the companies, there are only audited financial statements available or the 2018 annual report has not been published as yet.
Research Questions
The research questions are as follows:
Is there a relationship between size of the board of directors and the performance of a financial institution?
Is there a relationship between board independence and the performance of afinancial institution?
Do companies present the main features of the management report of internal control?
What are the effects of internal controls on the performance of financial institutions?
Does the commitment to effective internal controls and corporate governance enhance the performance of financial institutions
Hypothesis
The Hypothesis to be tested are as follows:
Hypothesis 1 : There is a significant negative relationship between board size and firm performance.
Hypothesis 2 : There is a significant positive relationship between the proportion of independent directors on the board and firm performance.
Hypothesis 3: There is a significant positive relationship between audit committee independence and financial performance.
Hypothesis 4: There is a significant negative relationship between audit committee size and financial performance