Political corruption, political connection and bank performance responsibility

Abstract

Purpose: To examine the Political Corruption, Political Connection and Bank Performance nexus. Design/Methodology/Approach: The study follows a quantitative approach to its research objectives. Specifically, the study attempted to analyse political corruption, political connectedness and Bank profitability nexus for a panel of 15 commercial Banks for the time period of 5-years (2012-2016) using the GMM estimation. Findings: The study found that political corruption, GDP growth rate and cost to income, capital adequacy and non-interest income to total asset ratio are statistically significant variables. Practical Implications: These methods will have a momentous impact on the nature of relationships between political corruption, political connection and bank performance. Originality/Value: based on the findings of the current study policy makers, anticorruption institutions, banks, via others can make informed decisions and judgments. This article is an original content with appropriate references.