Open AccessCorporate Governance and Financial Performance of Nepalese Commercial Banks
Author(s) -
Mohan Prasad Sapkota
Publication year - 2020
Publication title -
pyc nepal journal of management/pyc nepal journal of management
Language(s) - English
Resource type - Journals
eISSN - 2738-9847
pISSN - 2091-0258
DOI - 10.3126/pycnjm.v13i1.31496
Subject(s) - corporate governance , leverage (statistics) , business , accounting , net interest margin , market liquidity , debt ratio , return on assets , financial system , margin (machine learning) , sample (material) , debt , finance , profitability index , chemistry , chromatography , machine learning , computer science
This paper focuses on determining the relationship between corporate governance and financial performance of Nepalese commercial banks as well as examining the impact of corporate governance on banks performance. The sample consists of 9 commercial banks for the 10 year period of 2008/09 to 2017/18. Corporate governance is considered as leverage ratio, board meeting, board size and ownership concentration had mixed results on banks performance measured by ROE. Evidence indicates that debt ratio, net interest margin and total assets have significant positive contribution on banks performance. Board meeting and liquidity have negative impact on banks performance. However, board size and ownership concentration have no significant contribution to the firm performance.