Impact of Corporate Governance on Performance of the banking sector: A Test of Mediating Role of Stakeholders Satisfaction: A Case from the banking sector of Pakistan

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ABSTRACT

In this study, we try to explore the concept of corporate governance in the banking industry in a holistic context. The main focus of the research is on the impact that corporate governance has on the performance of the banking sector of Pakistan. The research also analyzes many aspects of corporate governance and tries to gauge its effects on the shareholder satisfaction.

ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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TABLE OF CONTENTS

ABSTRACTII

ACKNOWLEDGEMENTIII

DECLARATIONIV

CHAPTER 01: INTRODUCTION1

Outline of the Study1

Background of the Study1

Overview2

Aims and Objectives3

Research Aims3

Research Objectives4

Research Questions4

Significance of the Study4

Theoretical Framework5

CHAPTER 02: LITERATURE REVIEW6

Conceptual Framework6

Cross-Mapping Matrix for the Impact of Corporate Governance for Pakistani Banking Sector9

Corporate Governance9

Evolution of Corporate Governance11

Theories of Corporate Governance13

Agency Theory13

Stewardship Theory14

Stakeholder Theory15

Impact of Corporate Governance Practices on Stakeholders17

Corporate Governance and Pakistani Banking Industry22

The Corporate Governance: Between Business and Management Shareholders25

The Impact of Stakeholder Satisfaction on Firm Performance26

The Importance of Corporate Governance28

Functions of Corporate Governance30

Reasons Why Corporate Governance Has Received More Attention Lately32

Corporate Governance and Performance of Banking Industry33

CHAPTER 03: METHODOLOGY39

Informed Consent39

Confidentiality40

Validity40

Data Analysis41

Qualitative Data Analysis41

Participants42

Ethical Consideration42

CHAPTER 04: DISCUSSION AND ANALYSIS43

Issues in The banking sector of Pakistan43

Good Corporate Governance Practices Have Impact on the Performance of The banking sector43

Corporate Governance Practices Worsen or Enhance the Stakeholders' Satisfaction Level46

CHAPTER 05: CONCLUSION49

REFERENCES51

APPENDIX55

Interview Questionnaire55

CHAPTER 01: INTRODUCTION

Outline of the Study

This research concentrates on the several facets of corporate governance and incorporates the following chapters:

Introduction

Literature Review

Methodology

Discussion and Analysis

Conclusion

Background of the Study

Likewise all over the world, in Pakistan too, the corporate governance has significantly improved over the past few years but much remains to be done which includes the removal of the obstacles to good corporate governance. The aim of the research thesis is to find out whether the Corporate governance is contributing towards the improved performance of The banking sector of Pakistan or not?

The concept of corporate governance is a key issue for the improvement of economic growth and efficiency. Top level management considered the corporate governance as a tool to reduce the mismanagement or misconduct in organizational processes, and for the enforcement of regulation and management policies and decisions for protection the rights of stockholders & stakeholders in the banking industry. However, banks are considered as a major sector in every economy, good corporate governance practices are a necessity for the banking sector especially for the banking sector of Pakistan where this sector is not playing that role ...