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Does Corporate Governance Affect the Financial Performance? Analysis of Findings from Jordanian Banks

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  • Basman Aldalayeen

Abstract

The present study explored the impact of corporate governance on the financial performance of selected Jordanian banks. The study is based on secondary data collected from Annual Reports of Companies, research papers, articles and various websites. The sample of the study consists of five banks of Jordan. Multiple regression has been used as the statistical tool to measure the impact of corporate governance on the financial performance of banks under study. Corporate governance score is taken as independent variable while ROA is used as dependent proxy variable of financial performance. The findings of the current research highlighted that corporate governance score has a positive significant impact on the financial performance of Capital Bank of Jordan, Arab Bank, and Bank Al-Etihad. However, significant impact does not found on the financial performance of Jordan Islamic Bank and Jordan Dubai Islamic Bank.

Suggested Citation

  • Basman Aldalayeen, 2017. "Does Corporate Governance Affect the Financial Performance? Analysis of Findings from Jordanian Banks," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(4), pages 123-123, March.
    • Handle: RePEc:ibn:ijbmjn:v:12:y:2017:i:4:p:123
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    References listed on IDEAS

    as
    1. Mashayekhi, Bita & Bazaz, Mohammad S., 2008. "Corporate Governance and Firm Performance in Iran," Journal of Contemporary Accounting and Economics, Elsevier, vol. 4(2), pages 156-172.
    2. Onuorah, Anastasia Chi-Chi & Imene Oghenefegha Friday, 2016. "Corporate Governance and Financial Reporting Quality in Selected Nigerian Company," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 2(3), pages 7-16, February.
    3. Siti Nuryanah & Sardar M. N. Islam, 2015. "Corporate Governance and Financial Management," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-43561-3, March.
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    Cited by:

    1. Narsa Goud Neralla, 2022. "Can corporate governance structure effect on corporate performance: an empirical investigation from Indian companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(3), pages 282-300, September.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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