| Title : | Corporate culture and firm performance: a case of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Kavina Shrestha, Author | | Publication Date: | 2014 | | Pagination: | 94p. | | Size: | GRP/Thesis | | Accompanying material: | 2/B | | General note: | Including bibliography
| | Languages : | English | | Descriptors: | Banks
Banks and banking
Commercial banks
Corporate culture
Nepal
Performance
| | Keywords: | 'corporate culture performance commercial banks bank and banking banks Nepal' | | Class number: | 658.4 | | Abstract: | From the past few years, it has been seen that Nepalese commercial banks are playing a significant role in the economic development of a country. There are numerous empirical evidences of developed countries that corporate culture has significant impact on the improving the performance of commercial banks. However, despite of several empirical evidences, corporate culture and bank performance issues are still unsolved in context of Nepalese banking industry. So, determining the strength of corporate culture as well as its impact on the performance of commercial banks has always been a crucial issue for every Nepalese commercial bank. Therefore, this study attempts to identify the determinants of corporate culture and its impact on the performance of Nepalese commercial banks.
This study attempts to evaluate the performance of Nepalese commercial banks from growth, cost and profit perspectives. Similarly, this study also considered various dimensions of corporate culture such as involvement, consistency, adaptability and mission in order to measure culture of Nepalese commercial banks. Based, on Denison Organizational Culture Survey (DOCS), this study used cultural strength index as the proxy for corporate culture in order to link culture and performance of Nepalese commercial banks.
The study was based on both primary and secondary sources of data. Altogether, 17 commercial banks which were established before 2002/03, was taken as the sample for the study. This study used methods such as descriptive analysis, correlation analysis, and regression analysis in order to analyze secondary data. Likewise, primary data was analyzed by using percentage frequency distribution.
The study concludes that one year lagged volume of loan, credit risk, age of the bank, capital and one year lagged capital are the most dominant variables that have significant impact on performance of commercial banks in Nepal as measured by volume of loan from growth perspective. Likewise, from the perspective of cost, one year lagged cost to income ratio, operating income and one year lagged operating income are the most dominant variables that have significant impact on performance of Nepalese commercial banks. Similarly, one year lagged net interest margin, cash reserve ratio, total assets, one year lagged total assets, inflation rate and one year lagged growth rate of gross domestic product are the most dominant variables that have significant impact on performance of commercial banks as measured by net interest margin from the perspective of profit. This study also concluded that culture of bank has no impact on performance of commercial banks because there is no sufficient evidence to prove that culture of bank does have impact on performance of commercial banks.
Likewise, the primary survey results indicate that involvement is the most important factor for maintaining strong culture in the bank followed by consistency, adaptability and mission. The study also concluded that strong culture have more impact on performance level of the employees. Finally, the study also concluded that strong culture motivates the employees as well as enhances coordination and control.
Based on the findings and conclusions the study recommends that commercial banks should focus on minimizing their credit risk as well as increase their volume of capital in order to increase the volume of loan. The study also suggested that commercial banks should maintain higher operating income and cash reserve ratio in order to improve their performance.The study also recommended that commercial banks should allow employees at all levels of the banks to engage in pursuit of the mission and work in a collaborative manner to fulfill bank’s objectives. Finally, the study also recommended that commercial banks should focus mainly on improving the competitive culture that emphasizes values relating to demanding goals, competitive advantage, marketing superiority and profits because it is the most important type of culture in commercial banks.
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Corporate culture and firm performance: a case of Nepalese commercial banks [printed text] / Kavina Shrestha, Author . - 2014 . - 94p. ; GRP/Thesis + 2/B. Including bibliography
Languages : English | Descriptors: | Banks
Banks and banking
Commercial banks
Corporate culture
Nepal
Performance
| | Keywords: | 'corporate culture performance commercial banks bank and banking banks Nepal' | | Class number: | 658.4 | | Abstract: | From the past few years, it has been seen that Nepalese commercial banks are playing a significant role in the economic development of a country. There are numerous empirical evidences of developed countries that corporate culture has significant impact on the improving the performance of commercial banks. However, despite of several empirical evidences, corporate culture and bank performance issues are still unsolved in context of Nepalese banking industry. So, determining the strength of corporate culture as well as its impact on the performance of commercial banks has always been a crucial issue for every Nepalese commercial bank. Therefore, this study attempts to identify the determinants of corporate culture and its impact on the performance of Nepalese commercial banks.
This study attempts to evaluate the performance of Nepalese commercial banks from growth, cost and profit perspectives. Similarly, this study also considered various dimensions of corporate culture such as involvement, consistency, adaptability and mission in order to measure culture of Nepalese commercial banks. Based, on Denison Organizational Culture Survey (DOCS), this study used cultural strength index as the proxy for corporate culture in order to link culture and performance of Nepalese commercial banks.
The study was based on both primary and secondary sources of data. Altogether, 17 commercial banks which were established before 2002/03, was taken as the sample for the study. This study used methods such as descriptive analysis, correlation analysis, and regression analysis in order to analyze secondary data. Likewise, primary data was analyzed by using percentage frequency distribution.
The study concludes that one year lagged volume of loan, credit risk, age of the bank, capital and one year lagged capital are the most dominant variables that have significant impact on performance of commercial banks in Nepal as measured by volume of loan from growth perspective. Likewise, from the perspective of cost, one year lagged cost to income ratio, operating income and one year lagged operating income are the most dominant variables that have significant impact on performance of Nepalese commercial banks. Similarly, one year lagged net interest margin, cash reserve ratio, total assets, one year lagged total assets, inflation rate and one year lagged growth rate of gross domestic product are the most dominant variables that have significant impact on performance of commercial banks as measured by net interest margin from the perspective of profit. This study also concluded that culture of bank has no impact on performance of commercial banks because there is no sufficient evidence to prove that culture of bank does have impact on performance of commercial banks.
Likewise, the primary survey results indicate that involvement is the most important factor for maintaining strong culture in the bank followed by consistency, adaptability and mission. The study also concluded that strong culture have more impact on performance level of the employees. Finally, the study also concluded that strong culture motivates the employees as well as enhances coordination and control.
Based on the findings and conclusions the study recommends that commercial banks should focus on minimizing their credit risk as well as increase their volume of capital in order to increase the volume of loan. The study also suggested that commercial banks should maintain higher operating income and cash reserve ratio in order to improve their performance.The study also recommended that commercial banks should allow employees at all levels of the banks to engage in pursuit of the mission and work in a collaborative manner to fulfill bank’s objectives. Finally, the study also recommended that commercial banks should focus mainly on improving the competitive culture that emphasizes values relating to demanding goals, competitive advantage, marketing superiority and profits because it is the most important type of culture in commercial banks.
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