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