Corporate Governance Mechanisms and Firm Performance in a Young Stock Exchange

Abstract

This chapter aimed at assessing the contribution of a bank's listing to its governance and performance. Using a single case study, it collected data on bank governance, performance, and stability over the period 2009-18. Findings show that listing improved I&M Bank's internal governance in particular soon after it listed on the Rwanda Stock Exchange in 2008. Its board's independence, size, and ownership showed significant changes soon after it listed and listing improved its performance as well as stability through governance. A change in both the board's size and independence significantly reduced the bank's non-performing loans and increased the bank's resilience (Z-score) and lending.