ZENITH International Journal of Business Economics & Management Research
  • Year: 2014
  • Volume: 4
  • Issue: 2

The impact of corporate governance on firm's performance: evidence from banking sector in Ethiopia

  • Author:
  • Asmamaw Yigzaw Chirkos
  • Total Page Count: 13
  • Page Number: 158 to 170

MSC in Accounting and Finance, Department of Accounting and Finance, College of Business and Economics, Bahir Dar University, Bahir Dar, Ethiopia

Online published on 8 April, 2014.

Abstract

The purpose of this study is to examine the impact of corporate governance on firm's performance. A sample of 14 bank has been taken for the period of 2007 to 2012 (N=14*6). Canonical regression analysis has been done to analyze the impact of corporate governance on firm's performance. The present study focused on the three variables for measuring the firm's performance such as Return on assets (ROA), Return on Equity (ROE) and Net Profit Margin (NPM). The obtained results report that corporate governance has significant and positive impact on firm's performance and it shows that firm's performance can be increased by improving the corporate governance structure.

Keywords

Corporate Governance, Impact, Firm's Performance, Ethiopia and Banking Sector