Impact of Corporate Governance on Financial Performance according to the Mediating Role of Firm Sustainability (case study: Private Banks of Iran)

Subject Areas : Financial engineering

Saeed Rasfijani ¹ , Abdolmajid Dehghan ²

1 - Department of Management, Yadegar-e-Imam Khomeini (RAH) Shahre Rey Branch, Islamic Azad University, Tehran, Iran
2 - Department of Business Management, Yadegar-e-Imam Khomeini (RAH) Shahre Rey Branch, Islamic Azad University, Tehran, Iran.

Received: 2020-09-27 Accepted : 2020-11-20 Published : 2021-06-22

Keywords: Corporate Governance, Financial Performance, corporate sustainability,

Abstract :

The study aimed to review the effect of corporate governance on financial performance considering the mediating role of corporate sustainability in Iranian private banks. The current study was applied in terms of purpose. Also, it was a field study in terms of the method of collecting and receiving information. Also, this study was descriptive and correlational in terms of research method. The population was consisted of Iranian private banks' staff. The number of 384 people were selected and examined as a sample using Cochran's formula. Ultimately, we analyzed the required data for testing the research hypotheses using structural equation modeling and PLS3 software. The results indicated that corporate governance influences the financial performance and the corporate sustainability. Also, the corporate sustainability influences the financial performance. The results also indicated that corporate governance influences the financial performance according to the mediating role of the corporate sustainability. The mediating role of environmental efficiency and health and safety management system was confirmed in the relationship between corporate governance and financial performance. But, community development and environmental management, commitment and social development capacity do not mediate this relationship.