Assessment of Corporate Governance Practice of Banks in Ethiopia; the case of United Bank Share Company
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Date
2020-06
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A.A.U
Abstract
The study assesses the degree to which the united bank share organization hold fast to corporate
governance principles and how the act of corporate governance principles draws in investors to
the bank. Previous research focus more on developed economies furthermore researchers from
least developed nations (LDCs) in general utilize the global reporting initiative (GRI) structure
as a benchmark which may not completely tap since LDC business structure and purposes are
quite different from that of developed world .The study is quantitative in nature and a descriptive
research design was adopted where survey research method was used. United bank head quarter
and selected bank branches in Addis Ababa were selected as a sample using a non-probability
design in the form of convenience sampling to collect data for the study. Accordingly, data for
the study were obtained through distribution of 300-structured questionnaire where 270 fully
filled survey questioners were acquired to conduct analysis using SPSS version 23. descriptive
statistics (Percentage, Frequency) and inferential statistics (Z-test and Chi-square) statistical
techniques were used to test the hypotheses stated in the study. The findings from the study
showed that adherence to corporate governance significantly attracts investors to united bank
and the degree of accountability to investors by corporate managers in united bank was found to
be significant. Furthermore, corporate governance found to be affecting positively and
significantly, the performance of united bank indicating that adherence to corporate governance
has positive impact on the performance of united bank share company. Based on these findings,
the study recommends that united bank should continue to explore various areas that would
entrench corporate governance in the industry namely; the recruitment of qualified corporate
managers, decentralization of strategic decisions making centers, increase corporate social
practice to attract further investment and customers.
Description
A Thesis Submitted to Addis Ababa University Department of Management in Partial
Fulfillment of the Requirement for the award of the Degree in Master of Business
administration program
Keywords
Banking Sector, Corporate Governance, united bank