Abstract:
The main objective of this study was to assess corporate governance practices and organizational performance in the banking industry the case of selected commercial banks in Ethiopia. The researcher employed a descriptive and explanatory research design, utilizing descriptive statistics (mean and standard deviation), Pearson correlation, and multiple regressions. Statistical data analysis was conducted using SPSS 22. The study employed a combination of purposive sampling and simple random sampling methods, with data collected through a structured questionnaire using a five-point Likert scale. The study spanned from 2009 to 2013, and organizational performance was evaluated based on efficiency and effectiveness. The findings revealed that participants agreed with the positive effects of corporate governance mechanisms, board composition, board independence, board competencies, communication strategies, and code of conduct on organizational performance. Furthermore, these factors were found to be significantly and positively correlated with organizational performance. Regression analysis indicated that corporate governance mechanisms, board composition, board independence, board competencies, communication strategies, and code of conduct had positive and significant impacts on organizational performance. However, based on regression analysis the impact of board competencies was positive but statistically insignificant. Among the variables, board composition and corporate governance mechanisms had the highest effects on organizational performance, followed by code of conduct, communication strategies, board competencies, and board independence., it can be concluded that the corporate governance practices of the banks were significantly associated with the performance of the Banks. Recommendations based on this study Improve corporate governance for better performance in commercial banks in Ethiopian. Enhance mechanisms, board composition, competencies, communication, and code of conduct. Continuously monitor and evaluate for ongoing progress
