Assessment on Corporate Governance Practice: the Commercial Bank Of Ethiopia
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Date
2017-06
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Addis Ababa University
Abstract
This study was conducted to evaluate the corporate governance practices of the commercial bank
of Ethiopia with the requirements set by the government, the supervisory authority (NBE) and
recommendations forwarded by internationally accepted organizations (OECD, the Basel
committee, and other major multinational organizations). The practice of corporate governance
was the critical focus of the study. Major components like the Role of the Owner/PFEA/ to Sound
Corporate Governance, Responsibilities of the BoD of the Bank, The Board’s size, nomination,
composition and Qualification, Stakeholders, Disclosure and Transparency, Internal Control,
Risk and Compliance and The Role of Senior Management of the Bank were taken as major
determinant variables. A descriptive research approach was employed to achieve the goal of this
research. The total population and target population were all managers of the bank and managers
working in Addis Ababa. A sample of responding staff was drawn of 388 managers, 260 were
working at branches and districts in Addis Ababa, whilst the remaining 128 were assigned in
different organs of the Head Office, were involved in the study. In order to get relevant data from
the target population questionnaire and interviews were used. A questionnaire prepared
addressing those variables were distributed and related documents were also reviewed. The data
gathered through questionnaires was analyzed and presented using SPSS software. The interview
and secondary data that were compiled and duly analyzed against the data obtained through the
questionnaire. A descriptive research approach was employed to achieve the goal of this research.
Based on the outcome, conclusion and recommendations were forwarded. In this respect,
generally the finding result portrayed that the culture of corporate governance in the CBE is good
but still has a setback and needs improvements. Based on the major findings, the study reached a
certain conclusion and presented some possible recommendations so as to alleviate the problems.
Keywords: Corporate Governance, PFEA, The Board’s size, nomination, composition and
Qualification, Stakeholders, Disclosure and Transparency, Internal Control, Risk and Compliance
and Senior Management of the Bank
Description
Keywords
Corporate governance, PFEA, The Board’s size, Nomination, Composition and qualification, Stakeholders, Disclosure and transparency, Internal Control, Risk and compliance and senior management of the bank