Impact Of corporate governance on bank profitability in developing countries.
The concept of corporate governance is a broad term that tends to describe the manner in which rights and responsibilities are shared amongst shareholders, managers and other stakeholders of a given institution and the impact this have on the performance of such institution. Corporate governance is the process and structure used to direct and manage the business and affairs of a company towards enhancing business prosperity and corporate accountability with the ultimate objective of maximising long-term shareholders’ value.
This research aims to establish the relationship between corporate governance and profitability of financial institutions with emphasis on banking industry. It aims at balancing the interests of a company's various stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the society at large which will eventually contribute to the growth and financial stability by underpinning market confidence, financial market integrity and economic efficiency.
The question of why corporate governance issues is important in banks’ risk management and ultimate performance has been a subject of debate in empirical literature and this research will be able to provide answers to some of the questions.
This study will like to look at this grey area by examining the relationship between Corporate Governance and profitability without necessarily leading to the collapse of such banks. This is important because profits declared by organisations determine their payback to different stakeholders in terms of dividend, tax and their contributions to the society.
1st Supervisor: Dr Owolabi Bakre2nd Supervisor: Professor Sushanta Mallick