Corporate Governance: Impact on Internal Control in selected commercial Banks in Bangladesh

Abstract

Corporate Governance is a widely discussed issue in the current management literature. The concept of corporate governance is a relatively new challenge that has evolved over the last few decades. After the recognition of the concept of Corporate Governance in businesses the right to be informed of those various groups has been established whose interest is affected by the activities of a business organization. A shareholder who has invested his fund in a company has the right to know, how efficiently the fund is being used likewise employees, customers, proximate community, government and society, in general, have right to be informed about how efficiently the company is dealing with their respective interests. On the basis of such information, they may decide to what extent they should support the activities of the companies where they are investing their valuable resources and efforts.
 There are various forms of business, but the corporate form of business (i.e. company) is playing a dominant role in the business sector. In the corporate form of business, shareholders nominate or elect a Board of Directors for governing their business. The Board of Directors is accountable to the shareholders for their activities and the accountability of these activities is treated as Corporate Governance. It can be defined as an organizational control device, which is a hybrid of internal and external control mechanisms with a view to achieving efficient utilization of corporate resources. So, proper application of Corporate Governance norms can accelerate effectiveness and transparency in the functioning of a company. 
 JEL Classification Code: E52, E58, O23