EXAMINING THE IMPACT OF CORPORATE GOVERNANCE ON THE FINANCIAL PERFORMANCE OF BANK
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Abstract
Purpose: The research has been conducted to find out the relationship between corporate governance practices and the performance of banks. Corporate governance provides structure to control and direct the organizations or banks. Theoretically, it is said that corporate governance practices improve the performance of the banks. This study reveals the same facts; the majority of the factors affect the performance of the banks. The independent variables of this study are Transparency, Independence, Ownership structure, Audit committee, BOD and CEO duality. This study is based on primary data, questionnaires were developed and distributed to top officials of banks. Results indicate that all independent variables have a significant impact on the performance of banks except the one variable which is transparency. Regulatory bodies should play their roles in the implementation of corporate governance practices on banks because it improves the overall performance of the banks. This study is useful for policy makers dealing with the corporate governance practices and indicating the important variables affecting the performance of banks. This study is based on primary data, in future secondary data can also be used or mixed method can be used for future studies.
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