CORPORATE GOVERNANCE AND THE PERFORMANCE OF COMMERCIAL BANKS: A FUZZY-SET QCA APPROACH

This paper examines the role of commercial banks' governance mechanisms in financial performance and loan quality. The research draws upon corporate governance theory, agency theory, and information asymmetry. Fuzzy-set QCA was used to analyze a sample of 32 commercial banks listed in the UK. Data referred to the pre-crisis period. Results confirm that different combinations of governance mechanisms can yield similar financial performance and loan quality. This research contributes to a better understanding of the relationships among banking governance mechanisms, financial performance, and loan quality. The paper also has practical implications because it identifies alternative governance solutions for the commercial banking sector.