Corporate Governance Practices in Nepalese Commercial Banks

Abstract

Corporate governance practices are essential to achieving and maintaining the public trust and confidence in the banking system, as a result they are critical to the proper functioning of the banking sector and economy as a whole. However, little attention has being given to corporate governance of banking sector especially in developing economies. This study examines the corporate governance on perceived performance. There are many dimensions of corporate governance but in this study only five components(transparency, accountability, fairness, discipline and responsibility)are considered as the factor of good corporate governance. The objective of this research is to analyze the impact of corporate governance on perceived performance of the commercial banks of Nepal. The study employed a qualitative methodology. Data was collected through a self-administered survey questionnaire. The questionnaire is adopted from a previous validated survey. The target population consists of commercial banks of Nepal. Simple convenience sampling is used for collection of data from 200 employees. The results indicate a positive relationship between corporate governance and perceived performance. The study concludes with some brief prospects that the businesses need to realize the importance of good corporate governance for maximizing the perceived performance. This paper may benefit society by encouraging people to contribute more to their jobs and may help them in their personal growth and development. Hence, it is essential for an organization to motivate their employees to work hard for achieving the organizational goals and objectives.