Work

Stakeholders’ View on Role of Corporate Governance Practices on Financial Performance of Financial Institutions in Nepal

Year: 2026

Type: article

Abstract: This study aims to examine the influence of corporate governance (CG) practices on the financial performance (FP) of the financial institution in Nepal, as well as the mediation effect of commitment to effective CG within the relationship. The structured questionnaire was used to administer the cross-sectional survey with 386 key stakeholders. The survey followed a convenience sampling technique. The study analyzes the hypothesized relationship among variables by using the partial least square structural equation modeling (PLS-SEM). Results show that CG practices, including board responsibility and accountability, and equitable treatment of shareholders, have a direct effect; however, disclosure and transparency have only an indirect effect on improving financial performance. The study found the mediating role of commitment to effective CG in the association between CG and FP. The study offers valuable insights for regulators and practitioners regarding how to improve performance through strengthening the CG practices and commitment.

Source: Journal of Development and Administrative Studies

DOI: 10.3126/jodas.v34i1.100461

Authors: Kripa Kunwar, Surya Bahadur G.C., Resam Lal Poudel, Umesh Singh Yadav

Institution: Pokhara University

Language: English

Topic: Corporate Governance and Financial Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: bronze

OpenAlex ID: W7214083236

FWCI:

Cites: 39

Cited by:

Related to: 10