Successful Implementation of Corporate Governance Mechanisms in Banks

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.

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Author Biographies

Dr. Abdullah Ahmed Aldaas, Middle East University, Amman, Jordan

Dr. Abdullah Ahmed Aldaas; Associate Professor in Accounting; Accounting and Financial Sciences Department, Middle East University, Amman, Jordan

Dr. Suleiman Jamal Mohammad, Princess Sumaya University for Technology, Amman, Jordan

Assistant Professor in Department Head at the Department of Accounting, Princess Sumaya University for Technology, Amman, Jordan

Dr. Mohammad Yousef Abuhashesh, Princess Sumaya University for Technology (PSUT), Jordan

Dr. Mohammad Abuhashesh is currently working as an Assistant Professor and Head of E-Marketing and Social Media Department in 2018–2019 at the PSUT, also he worked as a President Assistant of PSUT in 2017–2018. In addition to being a Regional Trainer for Speedway LLC since 2006, he served as a General Manager at the same company in 2006–2016. During those years, he has been creating a unique training experience for every one that comes through Speedway training program by developing unique training sessions that fit every employee who comes through the program. His mission is to help and teach students to stop waiting and start creating a career in marketing and social media strategy.

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Published
2019-10-01
How to Cite
ALDAAS, Dr. Abdullah Ahmed; MOHAMMAD, Dr. Suleiman Jamal; ABUHASHESH, Dr. Mohammad Yousef. Successful Implementation of Corporate Governance Mechanisms in Banks. Journal of Social Sciences (COES&RJ-JSS), [S.l.], v. 8, n. 4, p. 692.710, oct. 2019. ISSN 2305-9249. Available at: <http://www.centreofexcellence.net/index.php/JSS/article/view/jss.2019.8.4.692.710>. Date accessed: 17 oct. 2019. doi: https://doi.org/10.25255/jss.2019.8.4.692.710.
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