Studying the Role of Corporate Governance in the Development of Risk Management in Commercial Banks Listed At Amman Stock Exchange (Field Study) (Published)
The study aimed to identify the role of corporate governance in the development of risk management in commercial banks listed at Amman Stock Exchange (ASE). To achieve this goal, the researcher relied adopted an analytical descriptive approach in her study to be convenient to the study nature. A questionnaire has designed as a tool to collect data. It distributed to a sample survey of the members of the committee’s corporate governance, audit committees and risk management commissions in these banks. The questionnaires have statistically analyzed using Statistical Package for Social Sciences (SPSS). The most important findings of the study that the presence of the role of corporate governance committees resulting from the Board of Directors in development of risk management in banks listed at ASE. This role was in uneven degree, between medium and high. In addition, the role of audit committees is the most development in the risk management, followed by risk management committees, and finally to corporate governance committees. The study concluded a set of recommendations including: It is necessary to activate the role of committees in the exercise of its work in development of risk management in commercial banks listed at ASE. The sub-committees should constituted of the board of directors in accordance with corporate governance, which includes financially and accounting experienced members. Finally, the financial experience should not limited to a specific number of members
Keywords: Commercial Banks, Corporate Governance, Risk Management
Effects of Recapitalisation on Commercial Banks Survival in Nigeria: Pre and Post Camel Anaylsis (Published)
This paper examined the analysis effects of recapitalization on commercial banks survivals in Nigerian: pre and post camel analysis. This is because the banking industry in Nigeria has witnessed a lot of transformation as a result of the restructuring programmes channeled towards resolving the existing problems of the industry by the central bank of Nigeria. The banking consolidation and recapitalization of commercial banks exercise which has shaped the structure of the Nigerian banking industry significantly. This was driven by the need to strengthen the banking sector and reposition the banks to be strong in order to meet up with the internationalization of financial and business globalization best practices. The exercise was deemed necessary because having a strong capital base increasing their ability to assume risk and absorb losses. The study used an Ex-post-facto research design comprising of pooled data which employs the use of secondary data covering a thirteen years period pre and post recapitalization (2006- 2012) using 10 out of the 25 banks that emerged after the transformation to test the effect of the reform . Chow test was used to check for structurally difference between the pre and post period using CAMEL framework as indicators for measurement. The result of the regression model of Minimum capital base on capital adequacy, asset quality, management quality and earnings quality and liquidity indicated an increase after recapitalization and consolidation but only Capital adequacy and management quality had a structurally difference with the increment. Based on the findings, it is discovered that recapitalization and consolidation is a welcome development that is needed by the banks but it cannot stand alone in achieving all round soundness and stability desired by Central Bank of Nigeria, little thereafter we are still faced with the post 2006 distress of banks even after the huge recapitalization reform and the Central Bank of Nigeria bailing out 8 banks with over 400 billion in 2012. Therefore, we recommend among other things the strict compliance to corporate governance practices, zero tolerance on misreporting and fraudulent practices, enforcing laws like the liabilities of board members of failing banks and finally, every business needs an enabling environment to enhance profitability.
Keywords: Business Global Best Practices, Corporate Governance, Recapitalization Reform
Effectiveness of Audit Committee Practices and the Value of Listed Deposit Money Banks in Nigeria (Published)
This research study examines the effectiveness of audit committee and as well explores the relationship between audit committee effectiveness and the value of deposit money banks in Nigeria. The followings were identified as audit committee characteristics (Internal control, the integrity of financial reporting, commitment of audit committee members and meeting) and were used in identifying the effectiveness of audit committee. Eight questions-survey questionnaires related to the four identified characteristics were administered to 55 respondents spread amongst the five sampled banks. The questionnaire enables the study to seek the perceptions of the respondents on the effectiveness of audit committee in deposit money banks in Nigeria. The Chi Square statistical tool was used to test the two study’s hypotheses. The study finds that the Characteristics of Audit Committee practices relates to the effectiveness of Audit committees’ of the deposits money banks in Nigeria, hence portraying the committee’s effectiveness in performing its functions, the effectiveness of audit committee does not necessarily improve or otherwise on the value of the deposits money banks and results also indicate that activities as relate meeting of the audit committees’ of deposit money banks are not clearly stated in the annual accounts of the banks. It therefore recommends that detail issues of meetings of audit committees be clearly stated and or included in the annual reports of the banks.
Keywords: Audit Committee, Corporate Governance, Deposit Money Banks
INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) INTO CORPORATE GOVERNANCE: NEW MODEL, STRUCTURE AND PRACTICE: A CASE STUDY OF SAUDI COMPANY (Published)
This paper seeks to explore the integration of corporate social responsibility (CSR) into corporate governance (CG) structure and system. To obtain this objective, this paper firstly reviews the extensive literature of CG and CSR. Second, it investigates the conception and understanding of interrelationship between CG and CSR within case study context of petrochemical company operates in Saudi Arabia. A qualitative case study was adopted by conducting in-depth interviews with participants at various levels of board and management in petrochemical company operates in Saudi Arabia. The findings suggested that the majority of participants consider CG as an essential foundation for sustainable CSR activities. The significance of the findings can be found in the fact that the previous trend of focusing solely on CG in developing countries has been reverted and more attention is dedicated to CSR. The current study contributes to existing body of CSR and CG literature by presenting the new CSR governance model. Two important implications can be found in this study. At organizational level, board members and managers can improve the corporate policy and practice in context of engaging with stakeholders. At the national level, the policy makers within developing countries can build on the conclusion drawn in this paper and enhance capacities of their regulatory and judicial systems to protect stakeholder’s interest.
Keywords: CSR governance., Corporate Governance, Corporate Social Responsibility
Vol 3, Issue 5, May 2015 ()
Keywords: CSR governance., Corporate Governance, Corporate Social Responsibility
Board Characteristics and Firm Performance- Evidence from Palestine (Published)
The objective of this research paper is to assess the relationship between the Return on Assets and Board Characteristics (Board independence, Board meeting, Board size, Board expertise, Company size and Company year of incorporation). The research consisted of examining companies listed on the Palestine Exchange with analysis undertaken through regression analysis. After studying the six variables, the researcher found the existence of only one relationship which was between the age of the organization/ year of incorporation and the company’s Return on Assets (ROA). This paper provides a greater insight to understanding corporate governance in Palestine. The approach, taken in this paper, will enable companies to assess the true relationship between the Return on Assets to Board independence, Board meeting, Board size, Board expertise, Company size and Company year of incorporation. It will enable them, also, to find ways of ensuring these factors become more relevant to the organization’s performance. Palestine is still a young country in relation to corporate governance and the outcome of this paper will enable companies to grow positively
Keywords: Board Characteristics, Corporate Governance, Firm Performance, Palestine
IMPACT OF INSTITUTIONAL CHARACTERISTICS OF CORPORATE GOVERNANCE ON CORPORATE GOVERNANCE SYSTEM IN SUB-SAHARAN AFRICA ANGLOPHONE COUNTRIES (SSAA). (Published)
This paper assesses the impact of institutional characteristics of corporate governance on corporate system of firms using survey questionnaire based on international corporate governance norms. Data were collected from listed firms in Ghana, Nigeria and South Africa. The conclusions are follows: (1) In Ghanaian and South African firms show that regulatory framework and enforcement of corporate governance have a positive significant impact on corporate governance system. However, in Nigerian firms’ regulatory framework has a negative significant relationship with corporate governance system. This result suggests that in Ghanaian and South African firms’ regulatory frameworks and enforcement may be stronger than that in Nigerian firms. (2) In Nigerian firms, there are violations of minority shareholders right. (3) Ownership concentration is significant with corporate governance system in the region. This indicates that ownership concentration is prevalent in firms of Sub-Saharan African Anglophone countries. We recommend that there should be prudent monitoring of corporate governance rules and enforcement
Keywords: Corporate Governance, institutional characteristics and OLS regression
EXAMINING CORPORATE GOVERNANCE PRACTICES IN NIGERIAN AND SOUTH AFRICAN FIRMS (Published)
This paper reviews the historical background of corporate governance and emerging issues in the development and practice of corporate governance in Nigerian and South African firms. The paper examines the role of institutional bodies on corporate governance of listed firms, regulatory and enforcement, and institutional bodies of corporate governance in Nigeria and South Africa. Other issues also examined include role and responsibilities of corporate board and external factors that affect corporate governance such as politics, corruption, economic, and ownership structure of listed firms. We find that institutional shareholders are more active in South Africa than in Nigeria, also shareholders association in South Africa are not active compared with that of Nigeria. In addition, South Africa have a stronger institutional framework than Nigeria, this really provide an evidence to show that enforcement of corporate governance practices in South Africa seem to be better than Nigeria. Generally, we find that corruption and bribery, politics, economic and ownership structure influence effective corporate governance practice in each country
Keywords: Corporate Governance, Corruption, Economics and Ownership structure, Institutional frameworks, Politics
THE ROLE OF CORPORATE GOVERNANCE AND ITS IMPACT ON THE SHARE PRICE OF INDUSTRIAL CORPORATIONS LISTED ON THE AMMAN STOCK EXCHANGE (Published)
This study examined the principles of corporate governance, and make them known and its importance, and to achieve the goal of this study was to develop a questionnaire composed of (70) items, was distributed to a sample study, the study population consisted of industrial corporations listed on the Amman Stock Exchange, and number (70) Company, and was the study sample directors general and their deputies, managers, administrators and financial exclusively, working in industrial companies totaling (280) as director, due to the large size of the sample was selected a random sample of each company to be the research sample, and by (50%) of them, totaling (140) director in companies included in the study, and after the completion of the identification of the study sample were distributed to them (140) questionnaires were retrieved (125) to identify them, and the percentage of questionnaires suitable for statistical analysis of (112) to identify, has been used by researchers in the study, a set of statistical methods, available in the program Statistical Package for Social Sciences (SPSS), including style regression, and correlation analysis to test the hypotheses.The most important results of the study, that there is an application of the principles of corporate governance in industrial corporations listed on the Amman Stock Exchange. There is increase understanding and awareness of the departments of industrial companies to contribute to the principles of corporate governance. Therefore, this will contribute significantly to the upgrading and advancement of the price of the stock in the companies mentioned. One of the main recommendations recommended by this study , constantly industrial corporations listed on the Amman Stock Exchange to apply the principles of corporate governance, and the continuation of industrial corporations in adherence to the principles of corporate governance, in particular, the principle of the role of stakeholders in corporate governance, and the principle responsibilities of the Board of Directors, and the principle of disclosure and transparency, as they have a significant impact on the share price of the company
Keywords: Corporate Governance, Industrial Companies, Share Price, Stakeholders
CORPORATE GOVERNANCE AND RISK MANAGEMENT IN THE BANKING SECTOR OF GHANA (Published)
The purpose of this research is to examine the degree to which banks in Ghana use risk management practices and corporate governance in dealing with different types of risk. A modified questionnaire, divided into two parts was developed and administered to the selected banks’ board of directors, senior risk management officers and selected staff. The first part of the questionnaire covered five aspects: understanding risk and risk management, risk identification, risk assessment and analysis, risk monitoring, and corporate governance and risk management practices. This part included 32 closed-ended questions based on an interval scale. The second part consisted of two closed-ended questions based on an ordinal scale dealing with two topics: methods of risk identification, and risks facing the sampled banks. The result of the study indicated that, Board of Directors, senior staffs and not all staff are actively involved in risk management and the most important types of risk facing the sampled banks are credit risk, operating risk, solvency risk, interest rate risk, and liquidity risk. The study also found out that the sampled banks are efficient in managing risk
Keywords: Commercial Banks, Corporate Governance, Ghana, Management, Risk