Author(s) :

Samer Al-waeli.

Volume/Issue :

Abstract :

Corporate governance has received much attention in recent years and its effect on the sustainability of financial institutions in both developed and developing countries, especially in the context of strategic decisions which are crucial for the longevity of the institution. This paper primarily focused to highlight the correlation between corporate governance and sustainability of financial institutions as selected banks in GCC countriesand India. Sustainability of financial institutions which was measured by strategy policy development while the corporate governance attributes included board composition, the board size, independence of committees and duality, for the study. The study relies on descriptive research design with a sample of 261 responses from a structured questionnaire. Responses from both India and GCC countries' board members were analyzed using descriptive statistics and multiple regression analysis. It has been found that there exists a positive correlation between corporate governance and sustainability of financial institutions in both India and GCC countries. Despite the fact that the state of finance, the pattern of running the corporation and corporate culture is different but the mechanisms followed for corporate governance to attain sustainability are symmetric. Further, considering, the crucial role corporate governance mechanismmandates audit committee to play, the Indian framework provided scope for that function in letter and spirit, which is somehow missing in the GCC countries audit committees

No. of Downloads :

6

KEYWORDS:

Corporate Governance, sustainability, financial Institutions, India, GCC

INTRODUCTION & OBJECTIVES:

Corporate governance and sustainability are global opportunities requiring new levels of accountability, which come not just from new laws and regulations, but also the expectations of a broader stakeholder group have elevated the concerns at the board level of ensuring that effective, robust and reliable governance and compliance tools are in place. There is also an increased awareness that this needs to be underpinned with the right attitudes and behaviors to ensure people will still act in a manner that protects the organisation's reputation. Past studies confirm that organizations that focus more on sustainability practices have higher financial performance measured by return on assets, profits before taxation, and cash flow from operations compared to those without such commitments in some activity sectors (Rashid & Radiah, 2012). Many types of research have been done in the field of corporate governance and it is impacted by the sustainability of financial institutions. However, this paper to answer various questions for example. What is the Gap in present corporate governance structures between GCC countries and Indian banks? Second -Is there a relationship between audit committee size and sustainability of financial institutions in India and GCC countries banks? The main aim of this research is to investigate and explore perceptions concerning corporate governance practice in developing countries and the effect of corporate governance on the sustainability of financial institutions from a theoretical and practical perspective. The general area of research is governance, and the specific focus here is the current state of corporate governance practice and its effect on the sustainability of financial institutions in GCC countries and Indian Banks. To achieve this aim, the study objectives are as follows: To identify gaps in the present Corporate governance structures of India and GCC countries Banks. Explore the nature and extent of the practices of the corporate governance in the context of the India business environment.

DOI:

https://doi.org/10.58426/cgi.v1.i2.2019.75-92