CORPORATE GOVERNANCE OF FINANCIAL INSTITUTIONS IN BATTICALOA DISTRICT

Strategic Management

Corporate governance is wide range of practices which are affected the way of directing the organization. This is an emerging concept which is considered as an important suggestion for growth of companies in recent years. Meanwhile this concept has admired more attention and several analyses were taken place in recent past decades. Such analyses have found that Corporate Governance helps to make efforts to survive from major financial failures which were caused to the organizations. Good corporate governance practices have the impact of improving satisfaction level of stakeholders and enhancement of organization. This research paper investigates corporate governance of financial institutions in Batticaloa district. Factor analysis was employed to ensure the variables and as per analysis, variables were categorized into 4 factors such as board size, corporate governance mechanism, communication strategies, and code of conduct. Questionnaire was used to collect data for this study. 125 management respondents were selected for this study and simple random sampling method was used. Findings show that there is high level corporate governance among financial institutions in Batticaloa district. These findings would be useful to consider more on Corporate Governance practices to avoid the corporate collapses in future.

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