Successful Implementation of Corporate Governance Mechanisms in Banks

Authors

DOI:

https://doi.org/10.25255/jss.2019.8.4.692.710

Keywords:

Corporate Governance, Corporate Governance in banks, Corporate Governance mechanisms

Abstract

Corporate Governance is significant in managing the financial sector particularly banks of both the developing and the developed nations. Major corporate collapses worldwide revealed the presence of weak corporate governance system. The researcher conducted survey from the finance managers of the five commercial Jordanian banks which revealed that good corporate is significant for the performance of the banks. Good corporate governance balances the conflict of interest among the stakeholders. The participants believed that good corporate governance mechanisms such as transparency, privacy, legislations, code of conduct and clarity of procedures can enhance the efficiency of the banks. They believed that good corporate governance mechanisms effects the bank risks such as it protects the shareholders, stakeholders and reduces or transfers risk and ensures the stability of the economy. Hence, good corporate governance is essential for achieving success of the banking sector and in turn for the economic growth. The participants suggested that implementing good corporate governance in the banks leads to the integration of the capital markets, better solutions of the corporate governance issues and helps in building trust, integrity and transparency.

Downloads

Download data is not yet available.

Author Biographies

Dr. Abdullah Ahmed Aldaas, Middle East University, Amman, Jordan

Dr. Abdullah Ahmed Aldaas; Associate Professor in Accounting; Accounting and Financial Sciences Department, Middle East University, Amman, Jordan

Dr. Suleiman Jamal Mohammad, Princess Sumaya University for Technology, Amman, Jordan

Assistant Professor in Department Head at the Department of Accounting, Princess Sumaya University for Technology, Amman, Jordan

Dr. Mohammad Yousef Abuhashesh, Princess Sumaya University for Technology (PSUT), Jordan

Dr. Mohammad Abuhashesh is currently working as an Assistant Professor and Head of E-Marketing and Social Media Department in 2018–2019 at the PSUT, also he worked as a President Assistant of PSUT in 2017–2018. In addition to being a Regional Trainer for Speedway LLC since 2006, he served as a General Manager at the same company in 2006–2016. During those years, he has been creating a unique training experience for every one that comes through Speedway training program by developing unique training sessions that fit every employee who comes through the program. His mission is to help and teach students to stop waiting and start creating a career in marketing and social media strategy.

References

Abuhashesh, M., Al-Dmour, R., & Masa'deh, R. (2019a). Factors that affect Employees Job Satisfaction and Performance to Increase Customers’ Satisfactions. Journal of Human Resources Management Research, 1-23.

Abuhashesh, M., Al-Dmour, R., & Masa'deh, R. (2019b). Factors that Impact Job Satisfaction and Performance among Employees in the Jordanian Industrial Sector. Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018-Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth, 4285-4305.

Abuhashesh, M., Al-Khasawneh, M., Al-Dmour, R., & Masa’deh, R. (2020). The Impact of Facebook on Jordanian Consumers’ Decision Process in the Hotel Selection. IBIMA Business Review, Forthcoming.

Abuhashesh, M., Mohammad, S.J., & Al Khasawneh, M. (2019c). The Attitude of Jordanian Customers towards Virtual Stores. Int. J. Islamic Marketing and Branding, 4(1), 59-75.

Adams, C. A. (2002). Internal organizational factors influencing corporate social and ethical reporting: Beyond current theorizing. Accounting, Auditing & Accountability Journal, 15(2), 223.

Al-dalahmeh, M., Khalaf, R., & Obeidat, B. (2018). The Effect of Employee Engagement on Organizational Performance Via the Mediating Role of Job Satisfaction: The Case of IT Employees in Jordanian Banking Sector. Modern Applied Science, 12(6), 17-43.

Al-Dmour, R., Al Haj Dawood, E., & Al-Dmour, H. (2020). The Effect of Customer Lifestyle Patterns on the Use of Mobile Banking Applications in Jordan. Int. J. Electronic Marketing and Retailing, Forthcoming.

Al-Dmour, R., Obeidat, B., & Almajali, D. (2015). The Practice of HRIS Applications in Business Organizations in Jordan: An Empirical Study. 4th Scientific & Research Conference on New Trends in Business, Management and Social Sciences (COES&RJ-TK15/1).

Alkalha, Z., Al-Zu’bi, Z., Al-Dmour, H., & Alshurideh, M. (2012). Investigating the Effects of Human Resource Policies on Organizational Performance: An Empirical Study on Commercial Banks Operating in Jordan. European Journal of Economics, Finance and Administrative Sciences, 51, 44-64.

AL-Syaidh, N., Al- Lozi, M., & AlHarrasi, J. (2016). Transformational Leadership and its Role on the Effectiveness of Employees’ Behavior: A Theoretical Study. Journal of Business & Management (COES&RJ-JBM), 4(1), 14-35.

Asian Development Bank. (2000). Promoting Good Governance: ADB's Medium Term Agenda and Action Plan. R-Paper. October 2000.

Cadbury, S. A. (2000). The Corporate Governance Agenda. Corporate Governance: An International Review, 8(1), 7-15.

Carolan, M. (2012). Investors sue Anglo for $23m. Irish Times. November 2, 2009.

Cromie, A. (1986). Carrian fraud trial opens in Hong Kong. The Sydney Morning Herald. February 19, 1986.

Demb, A., & Neubauer, F. F. (1992). The corporate board: Confronting the paradoxes. Long range planning, 25(3), 9–20.

Hossain, M., & Reaz, M. (2007). The determinants and characteristics of voluntary disclosure by Indian banking companies. Corporate Social Responsibility and Environmental Management, 14(5), 274–288.

Isabel, S. (2004). The German twin crisis of 1931. Journal of Economic History, 64(3), 822-871.

Kamal, Y., Pervin, T. & Alam, S. (2007). Corporate Governance in the Banking Sector of Bangladesh. The Bangladesh Accountant, 57(30), 73-81.

Kraft, E. & Tirtiroglu, D. (1998). Bank efficiency in Croatia: A Stochastic - Frontier Analysis. Journal of Comparative Economics, 26, 282-300.

Llewellyn, D. T. (2007). Corporate Governance Issues in Non-Shareholder Value Financial Institutions: A Case Study of Mutual Building Societies in the UK. SUERF and the Central Bank of Cyprus. Seminar: Corporate Governance in Financial Institution. 29th - 30th March 2007.

Macey, J. R. & Miller, G. P. (1995). Corporate Governance and Commercial Banking: A Comparative Examination of Germany, Japan and the United States. Stanford Law Review, 48, 73-112.

Mahtab, N. & Abdullah, M. (2016). Corporate Governance in Financial Institutions in Bangladesh: A Preliminary Study. Arabian Journal of Business Management Review, 6(22).

Maqableh, M., Rajab, L., Quteshat, W., Khatib, T., & Karajeh, H. (2015). The Impact of Social Media Networks Websites Usage on Students’ Academic Performance. Communications and Network, 7(4), 159-171.

Mayer, C. (1998). Financial Systems and Corporate Governance: A Review of the International Evidence. Journal of Institutional and Theoretical Economics, 154, 144-165.

Moudud-Ul-Huq, S. (2014). Corporate Governance Practices in Bangladesh: A Comparative Analysis between Conventional Banks and Islamic Banks. Int. J. Manag. Bus. Res., 5(1), 53-60.

Prowse, S. D. ((1996). Corporate Finance in International Perspective: Legal and Regulatory Influences on Financial System Development. Economic and Financial Policy Review, Q III, 2-15.

Rashid, A., Rudkin, K. & Zoysa, A. D. (2015). Corporate Governance in Bangladesh: An Overview. University of Wollongong, Australia.

Raymond, A. D. (1948). The Medici Bank: Its Organization, Management and Decline. New York University Press.

Shannak, R., Obeidat, B., & Almajali, D. (2010). Information Technology Investments: A Literature Review. Proceedings of the 14th IBIMA Conference on Global Business Transformation through Innovation and Knowledge Management: An Academic Perspective, Istanbul-Turkey, 1356-1368.

Sherman, S. (2002). Enron: Uncovering the Uncovered Story. Columbia Journalism Review, 40(6).

Sobhan, F. & Werner, W. (2003). A Comparative Analysis of Corporate Governance in South Asia: Charting a Road Map for Bangladesh. Bangladesh Enterprise Institute.

Tierney, D. (2007). American men, American oil, American arms. FDR and Spanish Civil War: Neutrality and Commitment in the Struggle that Divided America. Duke University Press. p. 68.

Downloads

Published

2019-10-01

How to Cite

Aldaas, D. A. A., Mohammad, D. S. J., & Abuhashesh, D. M. Y. (2019). Successful Implementation of Corporate Governance Mechanisms in Banks. Journal of Social Sciences (COES&Amp;RJ-JSS), 8(4), 692.710. https://doi.org/10.25255/jss.2019.8.4.692.710