The Impact of Corporate Governance on the organizational Performance of Bank of Abyssinia

Corporate governance is an important factor for well-functioning of firms. Given the importance of banks, their governance assumes a central role. This paper looked at the effects corporate governance has on organizational performance in Bank of Abyssinia. The study was guided by the following specific objectives; effect of transparency on organizational performance; contribution of accountability on organizational performance; and effect of board composition on organizational performance at Bank of Abyssinia. Six years data for the period 2013-2018 was used for the study. Audited annual reports and questionnaires were also used to collect data to determine causal link between the independent and dependent variables. The major findings of the study revealed that, there is a significant relationship between transparency and organizational performance and transparency was a predictor of bank performance. Likewise, a significant relationship was observed between accountability and organizational performance where accountability was seen to be a predictor of bank performance. Further still, the relationship between board composition and organizational performance showed a significant relationship. In conclusion, transparency, accountability and board composition as dimensions of corporate governance, determine organizational performance at Bank of Abyssinia. Future researchers need to focus on these significant variables and additional corporate governance mechanisms.