| Title : | Impact of corporate governance on social information and disclosure of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Amir Man Shrestha, Author | | General note: | Including bibilography | | Languages : | English | | Descriptors: | Banks
Banks and banking
Commercial banks
Corporate governance
Nepal
| | Keywords: | 'corporate governance corporations finance banks banks and banking commercial banks Nepal' | | Class number: | 658.42 | | Abstract: | Corporate governance is an important concept which has been put into practice because of the needs of corporations to constantly be effective and perform better; and it is this need that has made corporate governance so necessary today. From a banking industry perspective, corporate governance involves the allocation of authority and responsibilities, i.e. the manner in which the business and affairs of a bank are governed by its board and senior management, including how they: set the bank’s strategy and objectives; determine the bank’s risk tolerance; operate the bank’s business on a day to day basis; protect the interests of depositors, meet shareholder obligations; and take into account the interests of other recognized stakeholders; and align corporate activities and behavior with the expectation that the bank will operate in a safe and sound manner, with integrity and in compliance with applicable laws and regulations (Basel Committee,2010). Thus, this study aims to analyze the impact of corporate governance on social information disclosure.
Information disclosure is an important and efficient means of protecting shareholders and is at the heart of corporate governance. It is also integral to corporate governance, i.e. an important element of corporate governance, since higher disclosure could be able to reduce the information asymmetry, to clarify the conflict of interests between the shareholders and the management, and to make corporate insiders accountable. Among the different types of information disclosed in the annual reports, disclosure on social information is focused in this study because a corporate governance guideline extends the responsibilities of the board of directors from the shareholders to wider aspect, i.e. stakeholders. Moreover, taking care of society is essential for the long-term sustainability of the firms and corporate social reporting becomes an important issue nowadays (Pramanik et al., 2008). Cortez and Penacerrada (2010) mention that protecting the society is part of the corporate social responsibility of the corporation.
Till now, there is no published empirical research that indentifies or examines the impact of Corporate Governance on Social Information Disclosure in Nepalese commercial banks. Therefore, an analysis of banks in Nepal from an “impact of corporate governance on social information disclosure” should be an interesting prospect. Such an investigation may provide the banks with fine and complicated information that will help them to reach the indefinable competitive edge they are searching for.
The study has utilized primary data. In order to collect the primary data, 200 questionnaires were distributed to the customers of 16 Nepalese commercial banks that include private banks, joint venture banks and public banks. The study includes eight non joint venture banks, six joint venture banks and two public banks. 150 questionnaires out of 200 were received. It should be noted that a set of questionnaire contained mixed type options such as personal information, yes/no/no ideas questions, ranking questions, five likert scale questions and open ended question concerning with corporate governance and level of social information disclosure of commercial banks.
Based on the results of primary data, the size of the audit firm, board size and board composition, ownership structure and CEO duality, size of customers are felt to be the most important elements of corporate governance that influence the level of social information disclosure. The study also concludes that among all of the elements of corporate governance size of audit firm have great impacts on the level of social information disclosure as shown by the result. It is also showed that social information disclosure is positively correlated with corporate governance dimensions (board size and board composition, size of customer) and negatively correlated with (size of audit firm, ownership structure and CEO duality).
The opinion survey reveals that the most of the respondents are convinced about effective corporate governance is linked towards the better level of social information disclosure. The majority of respondents have highlighted that CEO and Chairman must be different for high level of social information disclosure. Furthermore, the board responsibilities and structure has been taken as most important features of board of directors in order to disclose more level of social information. Moreover, banks should have good corporate governance in practice for the high level of social information disclosure.
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Impact of corporate governance on social information and disclosure of Nepalese commercial banks [printed text] / Amir Man Shrestha, Author . - [s.d.]. Including bibilography Languages : English | Descriptors: | Banks
Banks and banking
Commercial banks
Corporate governance
Nepal
| | Keywords: | 'corporate governance corporations finance banks banks and banking commercial banks Nepal' | | Class number: | 658.42 | | Abstract: | Corporate governance is an important concept which has been put into practice because of the needs of corporations to constantly be effective and perform better; and it is this need that has made corporate governance so necessary today. From a banking industry perspective, corporate governance involves the allocation of authority and responsibilities, i.e. the manner in which the business and affairs of a bank are governed by its board and senior management, including how they: set the bank’s strategy and objectives; determine the bank’s risk tolerance; operate the bank’s business on a day to day basis; protect the interests of depositors, meet shareholder obligations; and take into account the interests of other recognized stakeholders; and align corporate activities and behavior with the expectation that the bank will operate in a safe and sound manner, with integrity and in compliance with applicable laws and regulations (Basel Committee,2010). Thus, this study aims to analyze the impact of corporate governance on social information disclosure.
Information disclosure is an important and efficient means of protecting shareholders and is at the heart of corporate governance. It is also integral to corporate governance, i.e. an important element of corporate governance, since higher disclosure could be able to reduce the information asymmetry, to clarify the conflict of interests between the shareholders and the management, and to make corporate insiders accountable. Among the different types of information disclosed in the annual reports, disclosure on social information is focused in this study because a corporate governance guideline extends the responsibilities of the board of directors from the shareholders to wider aspect, i.e. stakeholders. Moreover, taking care of society is essential for the long-term sustainability of the firms and corporate social reporting becomes an important issue nowadays (Pramanik et al., 2008). Cortez and Penacerrada (2010) mention that protecting the society is part of the corporate social responsibility of the corporation.
Till now, there is no published empirical research that indentifies or examines the impact of Corporate Governance on Social Information Disclosure in Nepalese commercial banks. Therefore, an analysis of banks in Nepal from an “impact of corporate governance on social information disclosure” should be an interesting prospect. Such an investigation may provide the banks with fine and complicated information that will help them to reach the indefinable competitive edge they are searching for.
The study has utilized primary data. In order to collect the primary data, 200 questionnaires were distributed to the customers of 16 Nepalese commercial banks that include private banks, joint venture banks and public banks. The study includes eight non joint venture banks, six joint venture banks and two public banks. 150 questionnaires out of 200 were received. It should be noted that a set of questionnaire contained mixed type options such as personal information, yes/no/no ideas questions, ranking questions, five likert scale questions and open ended question concerning with corporate governance and level of social information disclosure of commercial banks.
Based on the results of primary data, the size of the audit firm, board size and board composition, ownership structure and CEO duality, size of customers are felt to be the most important elements of corporate governance that influence the level of social information disclosure. The study also concludes that among all of the elements of corporate governance size of audit firm have great impacts on the level of social information disclosure as shown by the result. It is also showed that social information disclosure is positively correlated with corporate governance dimensions (board size and board composition, size of customer) and negatively correlated with (size of audit firm, ownership structure and CEO duality).
The opinion survey reveals that the most of the respondents are convinced about effective corporate governance is linked towards the better level of social information disclosure. The majority of respondents have highlighted that CEO and Chairman must be different for high level of social information disclosure. Furthermore, the board responsibilities and structure has been taken as most important features of board of directors in order to disclose more level of social information. Moreover, banks should have good corporate governance in practice for the high level of social information disclosure.
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