Corporate Governance and Financial Performance of Centenary Bank

Abstract

The study examined the extent to which corporate governance affects financial performance, with respect to Centenary Bank. Corporate Governance comprised of board effectiveness, board size and ownership structure. The study objectives included assessing the extent to which board size & independence affects performance, examining the relationship between ownership structure and financial performance, and finding out the relationship between transparency & disclosure and financial performance. A cross sectional and survey study design was used supported by both qualitative and quantitative approaches. From a Two hundred fifty accessible population, one hundred ninety five respondents were drawn. Data collection methods used included interviews for qualitative data and questionnaire used for quantitative data. A response rate of 90.3% was realised. Ownership structure and financial performance, the bank should ensure that better management strategies be adopted locally within in the bank in order to achieve better financial performance and compete favorably within the financial market with foreign banks Transparency & Disclosure and financial performance, the bank should ensure that there is high level of transparency and disclosure must be mandatory. It should avoid information asymmetry that can affect its level of financial performance.