CORPORATE GOVERNANCE AND BANK PERFORMANCE IN NEPAL

Abstract

Corporate governance is the process through which top management, the board of directors, and shareholders collaborate to determine the performance and course of the company. It also discusses how the goals that direct the corporation's governance interact with its stakeholders. Finding the characteristics that best capture corporate governance and banking performance is the primary goal of the study; to investigate the connection between bank performance and corporate governance. Analyzing Nepalese commercial banks' corporate governance and bank performance is one of the study's main goals. A descriptive, causal comparative research design was used in this investigation. To describe the relationship between multiple factors or features and their causes, a casual research design is used. This survey includes 20 commercial banks. For the study, ten out of the twenty commercial banks have been chosen. According to the study, ROA and NIM are negatively impacted by board size, earnings per share, and female directors. While earnings per share and the number of female directors are statistically negligible, board size is statistically significant. ROA and NIM are positively impacted by the capital adequacy ratio and the ethnic group as well. Performance is positively impacted by the capital adequacy ratio in a statistically significant way. Ethnic group is important as a result. Therefore, the following variables have a linear relationship with ROA and NIM: board size, earnings per share, ethnic group, capital adequacy ratio, and number of female directors.