The Impact of Corporate Governance Quality on the Financial Performance of Banks with Emphasis on the Moderating Role of Disclosure Quality

Recently, the sharp decline in earnings per share and the sharp fall in stock prices have led to the failure of managers of investment and investor companies in this area. Therefore, this research seeks to confirm whether reinforcement of corporate governance mechanisms increases the efficiency of financial performance of banks. A corporate governance system tries to maintain stakeholder rights using its tools and maximize corporate value. The main objective of this experimental study is to assess the impact of corporate governance mechanisms on the performance of the banking system, with an emphasis on the role of disclosure quality moderation. To achieve this goal, the correlation and panel regression method have been used for the period 2010 to 2016 and for selected private banks accepted in TSE as a statistical sample. The results of the research hypothesis tests show that the quality of corporate governance has a positive and significant effect on financial performance, but the disclosure quality does not have a significant impact on the interaction between the quality of corporate governance and the financial performance of banks