Corporate Governance and its Impact on Organizational Performance

Abstract

Corporate governance is emerging issue in current market scenario and it refers to set of rules and incentives by which the management of the company directed and controlled. Corporate governance is the extent to which companies are run in an open and honest manner is important for overall market confidence. Governance is the sum total of processes, structures, institutions and customs through which the functional of governing is carried out This research study considered the impact of corporate governance on the perceived performance of commercial banks in Nepal. The main objective of this research is to find out the present status of corporate governance of Nepalese commercial banks and examine its impact on performance. Primary data has been used to collect information. The questionnaire was adopted from a previous validated survey. The descriptive and explanatory research design has been followed and stratified and convenience sampling method was used. The result of this research shows that the present status of corporate governance in Nepalese commercial banks are slightly agreeable. Different dimensions of corporate governance (discipline, transparency, accountability, responsibility, fairness, independence and social awareness) have played significant role to improve performance. Among these dimension, social awareness can play vital role to keep corporate governance of commercial banks in Nepal.