Good Corporate Governance Is Good For Bank's Bottom Line

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Introduction: Corporate governance mechanisms are developed to ensure that the managers of the firm act in the best interests of shareholders/owners. Since the global financial crisis, there has been much attention placed on the importance of corporate governance, specifically on the banking sector. Good corporate governance is a significant factor in the publics’ perception of its corporate social responsibility (Young & Thyil, 2014). The duties and responsibilities of a company’s board of directors and the way they can manage their relationships with stakeholder groups and internal stakeholders can be described as a corporate governance (Pass, 2004). In the recent article “Good Corporate Governance is Good for Bank’s Bottom Line” published by The Conversation (Academic Rigour, Journalistic Flair) will be discussing the issues raised in relation to corporate governance with a brief summary of the articles. Good Corporate Governance is Good for Bank’s Bottom Line: The authors state that Australian banks improved efficiency after the Australian Securities Exchange (ASX) Principles of Good Governance was introduced in 2003 as shown by a study which was published in the Journal of International Financial Markets, Institutions and Money. The study examines the performance of 11 Australian banks from 1999 to 2013 as regards to the effectiveness of certain corporate governance measures. Adverse impacts are to be undoubtedly expected without good corporate governance. The said
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