Corporate Governance Performance and Performance Comparison Between Two Groups of Banking Institutions in Portugal

The term appears for the first time in the literature introduced by Richard [11] emphasizing the analysis of the structure and functioning of corporate policies. Habib [6] argued that Corporate Governance in the banking sector plays a significant role in protecting the interests of the stakeholders of financial institutions. As in any other economy, banks operating in the Portuguese market play a key role in financing the country's economy and growth. Corporate Governance in banking institutions in Portugal serves to meet the objectives of designing and implementing strategies that they consider appropriate to the interests of stakeholders and their sustainability regardless of economic circumstances. However, the financial collapse of 2007-2009 and the Portuguese sovereign debt crisis in 2011 affected the Portuguese banking system in a profound way, in such a way that many did not fulfill these objectives. This article aims to compare two groups of banking institutions (entities with and without Corporate Governance problems). The comparison is performed using a multiple regression, with eight independent variables, ranging from the economic situation to the structural and management context of the banks. Of the applied techniques, the difference between the groups is consistent with their intrinsic contextualization.