Enhancing Stakeholders’ Value Through Good Corporate Governance Practices: A Case of the Banking Sector

Owen Jailos Wimbo

doi:10.55524/ijirem.2026.13.3.9

Abstract

Corporate governance plays a vital role in ensuring transparency, accountability, and sustainable performance in the banking sector. This study examines the impact of corporate governance practices on stakeholder value creation in banks, with particular emphasis on board independence, transparency, risk management, internal controls, and ethical leadership. The research adopts a descriptive and analytical design and utilizes both primary and secondary data sources. Primary data were collected through a structured questionnaire administered to 100 stakeholders, including customers, employees, and management personnel, while secondary data were obtained from bank annual reports and published literature. The study analyzes corporate governance ratings, financial performance indicators such as Return on Assets (ROA) and Return on Equity (ROE), and stakeholder satisfaction levels. The findings reveal a positive relationship between corporate governance quality and stakeholder value. Banks with stronger governance mechanisms recorded higher stakeholder value scores and improved financial performance. The comparative analysis further indicates that governance reforms contributed to significant improvements in ROA and ROE across selected banks. Survey results show high stakeholder confidence in governance practices, with 75% of respondents expressing satisfaction. The study concludes that effective corporate governance enhances financial stability, profitability, stakeholder trust, and long-term sustainability in the banking sector. The findings highlight the need for continuous strengthening of governance frameworks to maximize stakeholder value and ensure sound banking operations.

Keywords

: Corporate Governance; Stakeholder Value; Banking Sector; Board Independence; Transparency; Risk Management; Internal Controls; Ethical Leadership.

References

Basel Committee on Banking Supervision, Corporate Governance Principles for Banks. Bank for International Settlements, 2015. Available from: https://link.springer.com/rwe/10.1007/978-3-031-25984-5_528
World Bank, Corporate Governance and Financial Stability Reports. Washington, DC, USA: World Bank, 2023.
International Finance Corporation, Corporate Governance in Emerging Markets. IFC Publications, 2021. Available from: https://link.springer.com/chapter/10.1007/978-981-96-6366-8_24
S. Claessens and B. B. Yurtoglu, “Corporate governance in emerging markets,” World Bank Research Observer, vol. 28, no. 1, pp. 1–33, 2013. Available from: http://dx.doi.org/10.6007/IJARBSS/v11-i12/11955
R. La Porta, F. Lopez-de-Silanes, A. Shleifer, and R. Vishny, “Investor protection and corporate governance,” Journal of Financial Economics, vol. 58, no. 1–2, pp. 3–27, 2000. Available from: https://doi.org/10.1016/S0304-405X(00)00065-9
OECD, Corporate Governance and COVID-19 Implications. Paris, France: OECD Publishing, 2023.
Singh, R. Sharma, and P. Kumar, “Corporate governance and bank performance in India,” Journal of Banking Studies, 2022.
K. Pandey and M. Singh, “Impact of governance practices on financial performance of banks,” Journal of Banking Studies, 2023.
Goyal, N. Sharma, and R. Verma, “Corporate governance and profitability in Indian banking sector,” 2025.
R. Mishra and A. Srivastava, “Ownership structure and performance of banks,” Journal of Financial Studies, 2010.
S. Sandhya and A. Parashar, “Corporate governance index and bank performance in India,” Indian Journal of Finance, 2019.
Bezawada and S. Adaelli, “Board independence and banking performance,” International Journal of Economics and Financial Issues, 2020.
OECD, Corporate Governance Factbook. Paris, France: OECD Publishing, 2019.
S. Dhar and S. Chhaochharia, “Governance quality and firm performance in emerging economies,” International Journal of Banking and Finance, 2021.
N. Kumar and S. Gupta, “Risk management and bank performance,” International Journal of Banking and Finance, 2022. Available from: https://tinyurl.com/33uxmawr
Reserve Bank of India, Report on Trend and Progress of Banking in India. Mumbai, India: RBI Publications, 2023.

Cites this article as

O. J. Wimbo "Enhancing Stakeholders’ Value Through Good Corporate Governance Practices: A Case of the Banking Sector", International Journal of Innovative Research in Engineering and Management (IJIREM), Vol-13, Issue-3, Page No-67-73, 2026. Available from: https://doi.org/10.55524/ijirem.2026.13.3.9

Corresponding Author

Owen Jailos Wimbo

Subject Matter Expert, Department of Management, Kazian School of Management, Mumbai, Maharashtra, India

Download Full Paper

Download PDF

No. of Downloads: 1 | No. of Views: 12

-->

Enhancing Stakeholders’ Value Through Good Corporate Governance Practices: A Case of the Banking Sector

Citations

Download Full Paper PDF

Total View 12

Total Download 1