Effect of Corporate governance Practices on Minority Shareholders’ Right: A Case of Awash Bank
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Date
2025-08
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Addis Ababa University
Abstract
Different scholars have examined the significance of corporate governance practices in promoting the development and protection of investors. Although these researchers contributed a lot to this matter, the researcher believed that more attention should be given to minority shareholders. To fill this gap, this study was conducted. The study aimed to examine the effect of corporate governance practices on minority shareholders' rights at Awash bank. A quantitative research approach and convenience data collection method were applied in the study. From the total population of 300 minority shareholders, 172 were sampled by Yamane’s sampling technique, and primary data was collected from 150 respondents of minority shareholders of Awash bank using a structured questionnaire. Both correlation and regression were conducted to analyze the data. Using SPSS software, the multivariate multiple linear regression model was used to examine the relationship between independent and dependent variables. The finding indicated that corporate governance practices have a positive and significant effect on the rights of minority shareholders. Hence, the researcher recommended that Awash bank should enhance its corporate governance practices like fairness, independence, and transparency to ensure the rights of minority shareholders. Finally, since the concept of minority shareholders' rights is a broad term, the researcher focused only on the right to protection from abusive actions, the right to accessibility to relevant information, and the right to participation in general meetings. Therefore, the researcher argued the importance of future research on other areas of minority shareholders' rights that this study did not cover
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Keywords
Corporate governance practices, Minority shareholders