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Corporate governance in an emerging economy: the antecedents of board performance and practices in the Ethiopian banks

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dc.contributor.advisor Abate, Fenta Mandefro Tsegabrhan Mekonen Wubie 2017-02-09T11:48:42Z 2017-02-09T11:48:42Z 2015-11
dc.identifier.citation Tsegabrhan Mekonen Wubie (2015) Corporate governance in an emerging economy: the antecedents of board performance and practices in the Ethiopian banks, University of South Africa, Pretoria, <> en
dc.description.abstract Corporate governance has received considerable attention over the past few decades especially after several corporate scandals and global financial crises surfaced. It is a tool that ensures the wealth maximization interest of shareholders (Grove & Clouse, 2015; Gupta, 2015). Several studies on corporate governance have been made around the world, mostly in the context of developed nations. These have made significant contributions to the corporate governance literature and practice. However, there is scant research that addresses corporate governance issues in the context of emerging economies. In terms of applicability, it is important to view corporate governance not as a whole but in the context of specific fashion due to the economic, political, social and cultural differences among countries. In spite of the numerous studies in the subject and their contributions, a significant gap exists in our understanding of the relationship between corporate governance structure, process and board performances. Most of the prior studies focused on board structure giving much less emphasis to the board process- the missing link. By way of addressing the gap and providing a broader understanding of the relationship among the corporate governance variables, this study, among others, explored how board structure and board process influence the board performance in an emerging market economy context. Board performance has hardly been explored in this setting and this study tries to contribute to the existing literature by examining the antecedents of the boards‟ performance. The antecedents are positioned in the second order constructs that include the board structure and the board process. The antecedents with the board structure go beyond the usual variables of size, CEO duality and the outside/inside directors‟ ratio. A mixed method approach was used in the collection and analysis of the data. Both quantitative and qualitative data were collected from private and public banks‟ governing bodies and various groups of stakeholders. The quantitative data were mainly analyzed statistically using the Partial Least Square method of the Structural Equation Modeling. The qualitative data obtained from the survey and the interviews were thematically analyzed to identify important concerns. The findings from the quantitative data analysis showed that board structure has positive and significant influence on board process, board service and control v task performance. The findings also indicated a positive and significant relationship between board process and both board service and control task performance. Furthermore, the study revealed that board process mediates the relationships between board structure and both board service and control roles; it was also found that ownership type affects board performance but has no influence on company performance. The stakeholders‟ perceptions of various aspects of corporate governance practices, as beginners, were found out to be not bad. However, Ethiopia, like many emerging market economies, does not yet have a fully developed legal and regulatory system. Additionally, the enforcement capacities of the regulatory organ are at a nascent stage, and a private sector that is able to support effective corporate governance has yet to emerge. The nature of the Ethiopian banking corporate governance system can be characterized by a one tier system with a non-executive board of directors and ownership concentration. The boards of directors are also mainly control oriented rather than strategic or service oriented leaders. en
dc.format.extent 1 online resource (xvii, 342 leaves) : illustrations (some color) en
dc.language.iso en en
dc.subject Corporate governance en
dc.subject Emerging economy en
dc.subject Board structure en
dc.subject Board process en
dc.subject Board performance en
dc.subject Firm performance en
dc.subject Second order en
dc.subject Ownership structure en
dc.subject Board of directors en
dc.subject Governing bodies en
dc.subject Stakeholders' perception en
dc.subject.ddc 658.42209663
dc.subject.lcsh Boards of directors -- Ethiopia en
dc.subject.lcsh Corporate governance -- Ethiopia en
dc.subject.lcsh Bank management -- Ethiopia
dc.title Corporate governance in an emerging economy: the antecedents of board performance and practices in the Ethiopian banks en
dc.type Thesis en
dc.description.department Graduate School of Business Leadership (SBL) en D.B.L.

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    Electronic versions of theses and dissertations submitted to Unisa since 2003

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