Date of Conferral

2021

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

John Bryan

Abstract

AbstractA lack of corporate governance and financial reporting may lead to a decrease in profitability and bank closures due to poor management, lack of capital, and liquidity. Based on agency theory, the purpose of this correlational study was to investigate the relationship between corporate governance, financial reporting, and three measures of profitability; return on assets, return on equity, and net interest margin, in 80 banks within the Midwest from 2015–2018. The data were collected from the banks' websites and the Federal Deposit Insurance Corporation (FDIC). The results of the three regression analyses were not significant; however, financial reporting was a more substantial contributor ( = -.122) than corporate governance ( = -.021) for return on equity, so bank leaders should monitor and maintain robust financial reporting systems. The implications for positive social change include the potential to build confidence amongst investors, managers, employees, and board members. Banking leaders with accurate banking information and sound corporate governance may improve community banking, leading to increased investors, strategic assumption of risk, and community economic and job growth.

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