The Effect of Corporate Governance on Perceived Organizational Success in Nepalese Commercial Banks

Abstract

Effective 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 effect of corporate governance on perceived organizational success. There are many dimensions of corporate governance but in this study only seven components (transparency, independence, accountability, fairness, social awareness, 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 organizational success of the commercial banks of Nepal. The study employed a qualitative methodology. Data was collected through a selfadministered

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 175 employees. The results indicate a positive relationship between corporate governance and perceived organizational success. The study concludes with some brief prospects that the businesses need to realize the importance of good corporate governance for perceiving success. This paper may benefit for all organization that may be service or manufacturing for realizing the importance of corporate governance on organizational success.