Harun, Abdurazak (2017) Corporate Governance and its Effect on Financial Performance of the Ethiopian Private Commercial Banks. Masters thesis, Addis Ababa University.
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Abstract
The paper takes a look at the effects of corporate governance on the financial performance of private commercial banks in Ethiopia. This exploratory study seeks to analyze the effect of different corporate governance mechanisms, particularly board gender diversity, directors’ educational qualification, variety number of internal board sub-committee, meeting frequency of board, board ownership, regulations of legal reserve and liquidity and depositor influence, on the financial performance of 8 privately owned commercial banks of Ethiopia. And the study also controls the effect of private commercial banks size. The financial performance measure was Return on Asset (ROA). In order to achieve this objective, the study uses mixed research approach that is by adopting quantitative method research approach by combining documentary analysis of secondary data which was collected from the National Bank of Ethiopia (NBE). And capturing and administrating primary data using structured questionnaire which were completed by board secretary and delegated staffs as he/she is in a better position to comment on corporate governance affairs. Panel data covering 11 year period from 2005-2015 was analyzed and regression result with recommendation are displayed for the selected 8private commercial banks. The cross section fixed effect technique has been applied to find out the most significant variables from considered corporate governance variables. The findings indicated that board gender diversity and liquidity ratio does not have a significant effect on the financial performance of selected private commercial banks.Board members educational qualification is positively but insignificantly related with the financial performance.Similarly, variety number of internal board sub-committee, meeting frequency of board, and board ownership had statistically insignificant positive effect on private commercial bank financial performance. In additionprivate commercialbank size had statistically significant positive effect on private commercialbank financial performance. Legal reserve ratio and depositor influencehave negative significanceat 5% level and positive significanceat 10% level effect on the financial performance of selected private commercial banks.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Banking Sector, Private Commercial Bank Financial Performance, Corporate Governance Mechanisms. |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance |
| Divisions: | Africana |
| Depositing User: | Andriamparany Edilbert RANOARIVONY |
| Date Deposited: | 09 Aug 2018 10:09 |
| Last Modified: | 09 Aug 2018 10:09 |
| URI: | http://thesisbank.jhia.ac.ke/id/eprint/8232 |
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