Corporate Governance Practices in Nepalese Commercial Banks
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Department of Management
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.