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Successful Implementation of Corporate Governance Mechanisms in Banks

Author

Listed:
  • Dr. Abdullah Ahmed Aldaas

    (Middle East University, Amman, Jordan Author-Orchid id: http://orcid.org/0000-0002-4524-8566)

  • Dr. Suleiman Jamal Mohammad

    (Princess Sumaya University for Technology, Amman, Jordan Author-Orchid id: http://orcid.org/0000-0002-7430-3691)

  • Dr. Mohammad Yousef Abuhashesh

    (Princess Sumaya University for Technology, Amman, Jordan Author-Orchid id: http://orcid.org/0000-0001-7460-450X)

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.

Suggested Citation

  • Dr. Abdullah Ahmed Aldaas & Dr. Suleiman Jamal Mohammad & Dr. Mohammad Yousef Abuhashesh, 2019. "Successful Implementation of Corporate Governance Mechanisms in Banks," Journal of Social Sciences (COES&RJ-JSS), , vol. 8(4), pages 692-710, October.
    • Handle: RePEc:jso:coejss:v:8:y:2019:i:4:p:692-710
    DOI: 10.25255/jss.2019.8.4.692.710
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    References listed on IDEAS

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    1. Colin Mayer, 1998. "Financial Systems and Corporate Governance: A Review of the International Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 154(1), pages 144-144, March.
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    Cited by:

    1. Najda Hayajneh & Taghrid Suifan & Bader Yousef Obeidat & Mohammd Abuhashesh & Raed Kareem Kanaan, 2020. "The relationship between organizational changes and job satisfaction in the Jordanian telecommunication industry," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(1), pages 1-20, January.
    2. Stephen Terlumun Jato, 2023. "Effect of Intellectual Capital on Tito," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 305-314, May.
    3. Mohammad Abuhashesh & Suleiman Jamal Mohammad & Mohammad Al Khasawneh, 2019. "The attitude of Jordanian customers towards virtual stores," International Journal of Islamic Marketing and Branding, Inderscience Enterprises Ltd, vol. 4(1), pages 59-75.

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