CORPORATE GOVERNANCE AND PERFORMANCE OF HYDROPOWER COMPANIES IN NEPAL
Date
2024
Authors
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Journal ISSN
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Publisher
Shanker Dev Campus
Abstract
The main purpose of the study is to examine the This thesis, titled Corporate Governance
and Performance of Hydropower Companies in Nepal, aims to explore the corporate
governance practices and their impact on the financial performance of hydropower
companies in Nepal. The review of literature reveals that corporate governance practices
such as board diversity, audit committee independence, and gender diversity have
varying effects on financial performance across different sectors and countries. Using
correlation and regression analyses, the study examines the relationship between
governance variables Board Size (BS), Audit Committee Size (ASC), Long-term Debt
Ratio (LTDR), Audit Committee (AC), and Executive Compensation (EXC) and
financial performance metrics such as Return on Assets (ROA) and Return on Equity
(ROE). The findings indicate that ASC and AC have a significant positive impact on
ROA, while BS and LTDR show a negative and positive relationship with ROE,
respectively. However, variables like EXC and AC do not have a statistically significant
effect on performance in either model. This suggests that while certain governance
practices are important, their impact may be limited by external factors such as market
conditions, regulatory frameworks, and company-specific characteristics. Overall, the
study highlights the need for tailored governance practices that align with the unique
operational context of hydropower companies in Nepal.