Corporate Governance and Organizational Performance: An Empirical Analysis of Nepalese Civil Organizations
The study investigates the relationship between corporate governance and the performance of organizations. It adopts quantitative methodological framework through which the primary data collected were analyzed using both Regression analysis and Karl Pearson’s correlation techniques to find the relationship between corporate governance and organizational performance on one hand and the degree of relationship between corporate governance and organizational performance. The findings shows that large board size, board skill, management skill, longer serving CEOs, size of audit committee, audit committee independence, foreign ownership, institutional ownership, dividend policy and annual general meeting are positively associated with the performance of organizations. Organizations are encouraged to adopt good corporate governance practices to improve their performance and also to protect the interest of the shareholders. Most importantly the regulatory authorities must ensure compliance with good governance and apply appropriate sanctions for non compliance to help the growth and development of industries in the country. The main contribution of the study to knowledge lies in its effort in strengthening corporate governance beyond the rights and responsibilities of different stakeholders in the management of an organization into areas involving the relationship between finance providers and an organization, compliance with legal, ethical and environmental needs of the society, among others.
Keywords— Corporate governance, Organizational performance, Civil Organization.