Abstract

This research was conducted in order to indicate the role of corporate governance in the commercial banks and Islamic banks in Jordan and its impact on financial and non-financial performance because of its positive effects on the improvement and development in the process of managerial decision-making through various development and modernization in the processes and stages of internal activities of banks and raise the level of performance.The study sample included the society represented by all commercial banks and Islamic Jordan totalling (16Jordanian Banks).Where the study aimed to executive management, sections and departments on the Application of Corporate Governance in those banks as well as financial and accounting departments where.The study found that commercial banks and Islamic banks in Jordan apply corporate governance through identified for its principles and its components and steps and provided specialized committees would activate the application of corporate governance. And recommended the need for greater attention to the competent authorities to monitor financial and non-financial performance of the departments of Jordanian banks and increase the provisions of the law and the necessary legislation imposed by the government and the competent application of corporate governance.

Highlights

  • The use of one sample t test. to test the hypothesis above and notes of the results of the analysis shown in table (2) that the value of (t calculated) When average default (3) is equal to (19.805) and in terms of statistics (0.000) is higher than the value of (T Tabulated) 1,9971, which is the value statistically significant at the level of statistical significance (0,05 a) we reject the Null hypothesis (HO) and accept alternative hypothesis, which provides: Jordanian Commercial banks and the Islamic banks do apply corporate governance through identified for its principles and its components and steps

  • Test was used ONE SAMPLE T-TEST to test the hypothesis above and notes from the results of the analysis described in the Table 3 that the value of (T calculated) when the average default (3) equal to (16.096) and in terms of statistics (0000) which is higher than the value of (T Tabulated) 1.9971, a value statistically significant at the level of statistical significance (a 3 0,05) we reject the Null hypothesis (HO) and accept the alternative hypothesis, which states: Non-financial performance for higher level of management in Jordanian commercial banks and Islamic banks is affected by applying corporate governance in

  • It is noted that all the paragraphs of the values of alpha (a) is greater than the acceptable (60%), where the value for the identification of a whole 0.956, reflecting the stability of the measurement tool, and this represents a ratio acceptable for the purposes of the stability of the internal consistency, and by acceptable for the purposes of analysis so that exceeded the agreed minimum of constancy. Through both sides of the theoretical research and the field has been reached to a set of conclusions was the most important: 1 - The study showed that the departments of commercial and Islamic banks in Jordan are concerned with non-financial performance along with the financial performance and is interested in increasing its efficiency and effectiveness through the application of corporate governance in banks concerned performance

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Summary

Introduction

Pat talk about corporate governance, regulations and laws imposed by the administration of financial companies in general and banks in particular, which include application where in the last two decades (Kayed, 2003, p7), takes a great deal of thinking in terms of a protective heeded when the departments of these companies and their government agencies relevant, especially in the absence of regulatory regimes, which is keen to provide appropriate safeguards to all recipients of financial accounting information and non-financial, especially those provided to them in reports or financial statements with credibility and consistency and neutrality. Etc., came the idea of creating the structure of corporate governance Organizational governance structures (OGS) and processes related to it as a way of scrutiny as a result of the scandals of corporate America at the end of 2001 and the fall of acute financial markets in 2002, and to invite the U.S government to reconsider the legislation, creating the Securities and Exchange Commission and the Committee bourse (SEC) Securities and Exchange Commission, in the United States in order to preserve the interests of those parties with the banks and increase the confidence in their administrations. Etc., came the idea of creating the structure of corporate governance Organizational governance structures (OGS) and processes related to it as a way of scrutiny as a result of the scandals of corporate America at the end of 2001 and the fall of acute financial markets in 2002, and to invite the U.S government to reconsider the legislation, creating the Securities and Exchange Commission and the Committee bourse (SEC) Securities and Exchange Commission, in the United States in order to preserve the interests of those parties with the banks and increase the confidence in their administrations. (Mirag and Abdul Hafeez, 2007, pp. 12-14) and (ESFRC, 2003)

Problem of the Study
Objective of the Study
Importance of the Study
Hypotheses of the Study
Theoretical Framework
The Concept of Corporate Governance
Elements of the Application of Corporate Governance
Population and Study Sample
Results Presentation
Sources of Data Collection
First Hypothesis
Result
Second Hypothesis
Conclusions
Recommendations
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