Advancing Corporate Governance Research In Banking: A Review Of Emerging Determinants Of Profitability

Abstract

This review article critically examines the evolving landscape of corporate governance in the banking sector, focusing on emerging variables that extend beyond traditional constructs such as board size, independence, and CEO duality. Drawing from a robust body of global literature and contextualized insights from emerging markets—particularly Jordan—the paper explores under-researched governance mechanisms including board gender diversity, ESG governance, risk oversight structures, ownership concentration, and digital governance practices. Grounded in agency theory, stakeholder theory, and resource dependence theory, the article argues that these new variables offer greater explanatory power in assessing bank profitability amidst increasing regulatory, technological, and environmental complexity. Empirical evidence suggests that diverse and ESG-conscious boards improve stakeholder trust and long-term financial outcomes, while risk governance frameworks enhance resilience and performance. However, the review highlights several critical gaps in current scholarship: a narrow methodological focus on cross-sectional studies, contextual bias favoring developed markets, and the neglect of behavioral and psychological governance dimensions. The article calls for a more integrative research agenda that incorporates longitudinal methods, panel data analysis, and interdisciplinary perspectives. Special attention is given to ownership structure variations in MENA banks, as well as the rising influence of digital governance in shaping performance metrics like ROA and ROE. In conclusion, the paper emphasizes that corporate governance in banking should be reframed as a dynamic, context-sensitive framework essential to navigating post-crisis regulatory environments and achieving sustainable profitability. The insights presented aim to inform scholars, policymakers, and practitioners seeking to enhance governance outcomes in the global banking landscape.