Please use this identifier to cite or link to this item: https://hdl.handle.net/10321/5177
Title: Does the corporate governance practice support the corporate financial performance of banking industries in Ethiopia? : panel data analysis
Authors: Kotiso, Mesele Shiferaw 
Marimuthu, Ferima 
Maama, Haruna 
Keywords: 1501 Accounting, Auditing and Accountability;Corporate governance practice;Ethiopian banks;Board characteristics and;Corporate financial performance
Issue Date: Jan-2023
Publisher: International Institute for Science, Technology and Education
Source: Kotiso, M.S., Marimuthu, F. and Maama, H. 2023. Does the corporate governance practice support the corporate financial performance of banking industries in Ethiopia?: panel data analysis. Issues in Social and Environmental Accounting. doi:10.7176/ISEA/S1-13
Journal: Issues in Social and Environmental Accounting 
Abstract: 
The high-profile corporate collapses and failures in early 2000s changed the image of accounting,
auditing, and regulatory environments. As a result, the need for implementing effective corporate
governance practice (CGP) in corporate financial institutions has gained significant attention
worldwide. Effective CGP paves the way for access to finance, lower cost of capital, better
corporate financial performance (CFP), and favourable treatment by all stakeholders. This study
examines the relationship between corporate governance variables and financial performance in
the Ethiopian banking industry. The board size, independence, educational level of board and audit
committee characteristics were employed as measures of corporate and return on assets (ROA) and
return on equity (ROE) as financial performance metrics. The study involves a census of all major
financial institutions supervised by the National Bank of Ethiopia (NBE) for six years, 2015-2020.
The main finding of this study revealed that the existence of board independence, the presence of
an audit committee, the financial leverage ratio and financial institution size have a positive
significant influence on CFP. Therefore, this study offers an important implication for developing
corporate governance and capital structure to support underdeveloped financial institutions. This
makes a significant contribution to the existing literature by addressing the specific context of
Ethiopian banking industries, filling a gap in knowledge regarding the relationship between
corporate governance and financial performance in this sector.
URI: https://hdl.handle.net/10321/5177
DOI: 10.7176/ISEA/S1-13
2460-6081
Appears in Collections:Research Publications (Accounting and Informatics)

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