The effect of establishing corporate governance in commercial banks on maintaining and improving financial health

Financial crises in recent years in the United States and financial scandals of disclosure such as Enron and something like them in the U.S as accounting and auditing and many of the developing countries indicate that although the most efficient accounting and auditing standards have been prepared and enforced by regulatory and professional authorities such as the Securities and Exchange Commission and the Financial Accounting Standards Boards, such financial scandals are happening again. The present research is an applied one designed quasi-experimentally using post-event approach. Research variables have been extracted from financial statements and information of commercial banks. The results of further studies on the recent hypothesis in state and non-state banks indicated that the manager's influence in state banks has negative relationship with the ratio of bad debts to the interest of granted facilities while the divergence in the duties of CEO and Head of Board as well as the ratio of institutional property had positive relationship with that index. These relationships have not been reported in non-governmental banks. It seems that these evidences are challenging in state banks, because the negative relationship between corporate governance and asset quality is not expected. However, the results of this test showed that the presence of institutional owners has increased this ratio.