Effect Of Corporate Governance On Financial Performance

Effect Of Corporate Governance On Financial Performance

Access Approving Samples Written by Our Top-Notch Subject Experts When Seeking Assignment Help Online in the UK.

Introduction - Effect Of Corporate Governance On Financial Performance

Chapter 1:

1.1 Introduction

Namibia is a country of South West Africa and it is famous for natural attractions. FNB Namibia Holdings is a finance company of Namibia and it is a listed company of Namibia bank sector. FNB organization has 27 branches, 17 agencies and 85 full-service ATMs and it is the first national bank of Namibia limited. FNB provides corporate and commercial banking services, private and personal businesses to millions of clients over South Africa as a financial institution FNB offered many services like business checking, provides employee benefits, loan and investment management services. FNB holdings company help to achieve the financial success and economic security by making a beneficial relationship which is based on integrity and trust. It provides the financial management services that are why this company can achieve their business goals and increase their profit. It is a short-term financing and provides the facility of lending process to their customers. The motto of FNB Namibia holdings bank sector is how they can help their employees. They invested a huge amount for their organization growth. The total numbers of employees in FNB is 48,780 and FNB group of companies making the ideal partner to develop their trade and investment flows among Africa, Asia, and Europe etc.

This organization has a daily transactions account which requires a monthly payment.FNB Namibia holding company is a limited company and a group organization of finance around 3 parts of business bank activities, retail bank, and bank work etc.It is a famous company of South Africa. FNB corporation full fill balance sheet, income statement, earnings cash flow estimates, ratio, and margins The FNB was built in August 2003 to maintain a relationship with the corporate investment funds of the financial group. It is referred to by First National Bank and according to banker magazine of London it is also the largest commercial bank. In the annual financial report of NAMIBIA company nominees for performance and role of background and reference. The consumer achieves economic financial security and economic success through making enduring, helpful relationships stand on integrity and trust. FNB average sales of bank monthly consultants pay R 15,180 in South Africa which is 7 4% above national average. The workers of the organization benefited through many ways like - paid sick leave, insurance of life, vacation, tuition, pension, flex time etc. The company value of the industry isboldness, integrity, trust, accountability, fun, passion, commitment to the consumer of the company.

Corporate governance is a process through which companies are controlled and direct boards. Corporate governance is a significant influence to the growth of an economy because good governance develops financial performance and reduces risk for investors, reduces risk and helps to attract investors. It is very important in finance because it built a process of practices and rules that defined how a firm operates and how it classifies the interest of every stakeholder. A well maintain corporate governance guide ethical business practices that leads financial activity. Good governance increases corporate performance as it generates six governance with an academically vindicated positive effect on performance. Upright corporate governance is running with a clear strategy for the business like effective in risk management, commitment and discipline, information and transparency etc. Companies' carbon calculation, respect of human rights, executive salary transparency, and implementation of conduct for employees are all examples of favorable corporate governance. 

In this research proposal, the case study is evaluated with literature reviews, methodologies, qualitative and quantitative findings and analyses. This e research proposal consists of the cases that have occurred in the country of Namibia where the initials aspects and statutes are explored in brief. Corporate governance is a p-process through which companies are controlled and direct boards. Corporate governance is a significant influence to the growth of an economy because good governance develops financial performance and reduces risk for investors, reduces risk and helps to attract investors. It is very important in finance because it built a process of practices and rules that defined how a firm operate and how it classifies the interest of every stakeholder.A well maintain corporate governance guide ethical business practices that leads financial activity. Good governance increases corporate performance as it generates six governances with an academically vindicated positive effect on performance. An upright corporate governance running with a clear strategy for the business like effective in risk management, commitment and discipline, information and transparency etc. Company’s carbon calculation respect of human rights, executive salary transparency, and implementation of conduct for employees is all the example offavourable corporate governance. 

1.2 Background of the study

This research shows the treatment efficiency of the nation where it combats the issues created by theFNB Namibia. The FNB organization was built in 1979 to carry important data research and be available to the public. FNB Corporation founded for service of finance to growth of business. FNB is the oldest bank that can offer various services and accounts to easily manage money throughout the year. It proposed banking solution like checking accounts, ATM access, online banking virtually from anywhere with electronic devices like phone, laptop etc. The important services of FNB are business checking accounts checking, lending, loan syndication of finance, service of retirement plan, payment service, corporate information. Corporate governance fulfills a vital role in making a culture of corporate consciousness, openness and transparency. 

The main goal of good corporate governance is to facilitate effective control and monitoring of an organization. It essentially stands on transparency and fairness in operation and increases disclosures of protecting the interest of various stakeholders. Corporate governance processes are expected to support the firm for performing better than previously by quality decisions defined. It defines a group of relationships between management of a company, itsshareholders, its board and its stakeholders. Good corporate governance ensures the development to protect the interest of shareholders of an organization but slowly it gains vitality for another society and stakeholders. 

Figure 1: Graph showing FNB NAMIBIA affected in country Nambia

Aims and objective

Aims

The main aim of the study is to reflect the main impact of corporate governance in financial organization of Namibia.

objectives

• To discuss themain impact of corporate governance in financial organization of Namibia
• To explore the repercussions for FNB Namibia individuals
• To highlight the challenges of financial organization from corporate governance in Namibia
• To evaluate possible suggestions for Namibia’s financial organization in gaining better opportunities for future

1.4 Research question

Q1: what is the main impact of corporate governancein financial organization of Namibia?

Q2: What are the repercussions for FNB Namibia individuals?

Q4: what are the challenges of financial organization from corporate governance in Namibia?

Q5: What are the possible suggestions for Namibia’s financial organization in gaining better opportunities for future?

1.5 Research Rationale

Corporate governance identifies the vital role of auditors and directors to other stakeholders and shareholders of an organization. For the stakeholder of an organization like customer, employees, suppliers, community and environment, it ensures that the organization behaves in a responsible manner to the environment and society. In corporate governance there is not only board accountability but also added aspects of environment and social responsibility. First National Bank offers business banking solutions which benefits the individuals in a large basis (Farhan et al. 2020). Individual bank comprises borrowing and loans, exchanger solution of foreign rewards, transact banking, wallet, wealth solution and global account.

The research rationale shows the issues in the research proposal topic. In this, the status of FNB Namibia isa financial organization which enables to evaluate their acceptance and experience in dealing with the circumstances in society (Fine et al. 2020Corporate governance identifies the vital role of auditors and directors to other stakeholders and shareholders of an organization. Individual bank comprises borrowing and loans, exchanger solution of foreign, eBucks rewards, transact banking wallet, wealth solution and global account. The bank also proposes management service and advisory of private wealth. It does its work by a network of branch offices, ASTMs, and serves individuals, online portals, and high net worth and corporate. Detailed data First National Bank requires for competitor and business intelligence needs. Information has been integrated on the First National Bank acquisition and mergers partnership of strategic (Appiah, 2019). Information has been integrated that First National Bank related like restructuring, expansion, contract wing a huge number of easy to grasp charts and graphs that present data and key trends.

Figure 2: FNB Namibia's financial performance

(Source: fnbnamibia.com, 2022)

This shows how much the researcher will find out regarding the acceptance of the research topic and for the research paper. As per the view of Knight et al. (2020), it is also tested that the increment cases in the country Namibia have created a historic movement where the new design of organization has reciprocated in managing the firm acquisitions to show a great accepting the new phase of business development. This part of the research shows the “justification for undertaking a given study” in brief. Here the researcher will take accurate solutions to mitigate the above-listed issues and to opt for a standpoint where they can influence people to stop differentiating the people. As narrated by Liang and Acharya (2020), it is also stated that the issues are generated through using the same equipment. Banks practicing well maintaining corporate governance in shareholder-orientedstyle, traditionally, fared less well than banks that have less shareholder influence. Corporate governance followed by Reserve Bank stands on three types for governing the banks these are off site surveillance, disclosure and transparency, and prompt corrective action. The problems of corporate governance include financial impropriety, mismanagementpoor investment, decision and enhancing distance between their cooperative and members (Nuryana and Surjandari, 2019). The objective and purpose of co-operatives brings a framework for co-operative corporate governance. First national bank strategy and the report of corporate finance is a source of comprehensive organization information and data (Yilmaz, 2018.). The report of organization covers the company's information structure analysis, service and product offering and action of corporate governance.

1.6 Research Scope

The research scope addresses the outcome that is implemented by the research to attain the goals through its objectives. As opined by Widiatmika and Darma,(2018), the scope is determined at the initial phase of the research where the topic is selected to show changes in the current scenario. This includes the exploration aspects and the idea that are included at each level to generate more value for the research. Parameters to measure the effectiveness and scope of this proposal are shown in this part of the research where the main causes and requirements for this research are stated in broke. As stated by McCollum et al. (2018), it will also help the user to assume many variations in this context. It is also state that the company use many philosophies to determine the authenticity of the research.

Corporate governance forms are more prominent to develop economics as they build corporate structure more efficiently that helps to compete with other multinational corporations. It also enhances the confidence level of investors of an organization, keeping momentum with global development (Pekovic and Vogt 2021). It has maintained a significant impact on independent boards of directors, increased disclosure requirements, built audit committees more powerful and many more. Detailed data First National Bank requires for competitor and business intelligence needs. Information on First National Bank acquisition and mergers partnership of strategic partnership and alliances transaction of private equity, capital raising and legal advisor (Appiah, 2019). Information which First National Bank related like restructuring, expansion, contract wing a huge number of easy to grasp charts and graphs that present data and key trends. Scope for this research turned as a beneficial part where a different firm uses different sources of the dominant structure to rejoice the terminated think to enhance the productivity. As mentioned by Karamoy and Tulung, (2020) in this, the targeted group of organization in all age categories is affected by FNB NAMIBIA. The results will bring few changes in the current medication system as well as in regular life. The mentality if the people must be changed and can potentially increase the level of the research. documenting the project and research boundaries must be reflected where the methods, budgets, resources, and outcomes are shown in a brief way (Poon et al.2020). The main purpose of the firm is tested in this part of theresearch where the researcher has made clear assumptions to increase positive thinking regarding the patients who are suffering from the disease.

1.7 Problem statements

Research problems are mentioned with its repercussion in these problem statements. The gap is shown in different levels through these statements. As narrated by Masud et al. (2018), the basic levels and standards of performance are increased or rectified by the professionals and the rules are made by implementing changes that can easily solve the issues. The research issues can be easily denominated in perceiving the changes that can bring favourable outcomes to cyhnge4 the current mindset of people regarding the positive people with the disease. The accurate research resigns and few plans discover common mistakes that are reflected in managing the consequences to a great extent (Sammaritano et al. 2020). This can be stated that the research here increases the motivational factors that can easily affect the changes in the medical parametric.

Authentication of the research plan creates hindrances in developing ethical issues, this is because the planned venture does not execute the same. As stated by Soleimani and Soleimani (2022), in this context the problems are readily not solved by the authors. However, there are many aspects through which the researcher has increased many variations in dealing with all the alternatives present in the research proposal. The future shortcomings are not accurately assumed; by this the ideas of the research may get change due to the dynamic environment (Venter 2019). Corporate governance and its application in evaluating the changes in the firm's aspects are readily facilitated by the terms in which this are evaluated on the same conditions.

1.8 Research significances

Research significance shows the importance of the research proposal as a sustainable process. Eliminating research gaps and difficulties are approaches in this part of the research proposal. As per the view of Wait et al. (2019), high-quality research is proposed when all the requirements and its alternative are clearly presented by the researcher. FNB brings a proper full range of consumer banking, commercial banking and solution of wealth management. It has parolee 340 branch locations and above 800 ATMs in its area of service. Recently it was famous as one of the best regional banks of 2022. First National Bank is a financial holding organization which added in the commercial banking provision, consumer banking, wealth management and insurance solution by these subsidiaries (Babaet al. 2022). The following things are - wealthmanagement, community banking,and insurance. The part of community banking proposed consumer and commercial banking service. The solution of commercial banking added small business, corporate banking, investment retail, international banking, capital market, business credit and lease financing (Paniaguaet al. 2018). The wealth management segment brings wealth. Investors of FNB hold a main ownership of this organization by 76.49% of outstanding share control by them. This interest in shares is always higher than other companies. The shareholder of FNB group has two corporations: Remgro and Royal BafokengHolding.FNB act as collecting tax revenue, fiscal agent, and securing the government's funds.Transferring government deposit, making loan by banks branch network and paying the bills o9f governments (Hakimahet al. 2019)

Strategies and awesomeness programs must be listed in various nations and places where the company intermediaries can exchange their views and ideas to develop individual minds regarding the FNB Namibia case. Specific scopes are liable to showcase the requirements of the research proposal.

1.9 Research outline

The research outline reflects the different aspects and approaches to make the current scenario more effective in reaching its aims. As narrated Chandrarin et al. (2019), implementing required context regarding the views, beliefs and experiences of the women who are dealing with the social trauma of accepting their value in society. As per the view of Kyereand Ausloos, (2021) basic strategies have reflected the fulfilment of the gaps that are reflected in this proposal. FNB organization based in Pennsylvania, Pittsburgh and the holding firm for its biggest subsidiary first national bank, the organization has $ 42 billion assets. The main services provided by the bank are ATM card, online banking, checking account etc.FNB enhanced its customer numbers to a combined total of 10.69 million.

The main principles of corporate governance are fairness, transparency, independence, responsibility of society etc. (Ehsan et al. 2019). It is the process of practices, rules, and systems through which an organization is controlled and directed. Corporate governance efficiently involves balancing the interest of shareholders, stakeholders, senior management, suppliers, customers, government, financiers and company. Directors of companies are influencing corporate governance (Seamanet al. 2018). The basic elements of corporate bank are management of risk, maintaining of account, Fairless relationship etc. The key element of investor relation and community of a company is corporate governance. It brings data includes governance information, committee charters. A good corporation creates control and rule, brings leadership, guidance and aligns interest, management, directors, and employees. It helps to make trust with the community, public and investor. It provided a clear idea of business integrity and companies direct5ion to stakeholder and investor of an organization. It promotes lo9ng time opportunities, returns, and viability. It facilitates the enhancement of capital. A good corporatesystemof an organization canraises prices and translate. Namibia has unique features: the landscapes, history, a diversity of cultures and small population. All these appeal researchers and create a requirement for liberating yet stable and ethical research (Khatib and Nour 2021).

1.10 Research methods

This qualitative research aspect shows the realness of the data where the ideas, values, thoughts, beliefs, and standards are clearly elevated to gain competence in the near future. As mentioned by Karaman et al. (2020), after the pilot study, the interviews will be taken to showcase the inner views and values of the organization and other individuals who are also infected with FNB NAMIBIA. “Grounded theory approach” and purposive sampling will also be used by the researcher to gain an effective research objective. These incurable diseases have the most occupancy and the firm may get an extra alternative to show the research effectiveness. Namibia has unique features: the landscapes, history, a diversity of cultures and small population. All these appeal researchers and create a requirement for liberating yet stable and ethical research (Khatib and Nour 2021).

1.10 Summary

The research summary shows the overall value of the research proposal which can bring changes in the values and drives of individuals. The research motives, insights, problems, solutions, gaps, methods and other segments are explained in brief. The main cause of the disease and how it spored from one person to another is also stated in the above paragraphs. Anonymity and confidence of the researchers are also stated to bring this important topic for the research which can provide numerous instructions with a deep to the users. This research can bring positive change to society in accepting the general context. The objects of the FNB Company are to help consumers to achieve economic goal and financial security through making mutually beneficial relationships which stand on integrity band trust. 

The objective of the FNB Company is to help consumers to achieve economic goal and financial security through making mutually beneficial relationships which stand on integrity band trust. 

References

Al-ahdal, W.M., Alsamhi, M.H., Tabash, M.I. and Farhan, N.H., 2020. The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51, p.101083.

Anikwe, C.C., Ogah, C.O., Anikwe, I.H., Okorochukwu, B.C. and Ikeoha, C.C., 2020. Coronavirus disease 2019: Knowledge, attitude, and practice of organization in a tertiary hospital in Abakaliki, southeast Nigeria. International Journal of Gynecology& Obstetrics, 151(2), pp.197-202.

Appiah, I., 2019. The Determinants of Non-Performing Loans Amongst Tier 4 Banks in Ghana. A Case Study of FNB bank Ghana Limited (Doctoral dissertation, University of Ghana).

Aridoss, S., Jaganathasamy, N., Kumar, A., Natesan, M., Adhikary, R. and Arumugam, E., 2020. Socio-demographic factors associated with FNB NAMIBIAprevalence among organization attending antenatal clinics in six Southern States of India: Evidences from the latest round of FNB NAMIBIAsentinel surveillance. Indian Journal of Public Health, 64(5), p.26.

Baba, S., 2022. The Effect of Corporate Governance on Financial Performance of Indigenous Universal Banks in Ghana. ADRRI Journal (Multidisciplinary), 31(1 (8), January 2022-March), pp.138-152.

Diddana, T.Z., Kelkay, G.N., Dola, A.N. and Sadore, A.A., 2018. Effect of nutrition education based on health belief model on nutritional knowledge and dietary practice of organization in Dessie Town, Northeast Ethiopia: A cluster randomized control trial. Journal of Nutrition and Metabolism, 2018.

Fine, C., Sojo, V. and Lawford?Smith, H., 2020. Why does workplace gender diversity matter? Justice, organizational benefits, and policy. Social Issues and Policy Review, 14(1), pp.36-72.

fnbnamibia.com, 2022 Available at: https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.fnbnamibia.com.na%2Fdownloads%2Fnamibia%2F2018_03_FNB_Namibia_Report_Final.pdf&psig=AOvVaw3Zq6BaRd_6JayoTi9hnJDf&ust=1664444166126000&source=images&cd=vfe&ved=0CAwQjRxqFwoTCLCPuu6Xt_oCFQAAAAAdAAAAABAd [Accessed on: 28^th September, 2022]

Hakimah, Y., Pratama, I., Fitri, H., Ganatri, M. and Sulbahrie, R.A., 2019. Impact of Intrinsic Corporate Governance on Financial Performance of Indonesian SMEs. International Journal of Innovation, Creativity and Change Vol, 7(1), pp.32-51.

Iqbal, S., Nawaz, A. and Ehsan, S., 2019. Financial performance and corporate governance in microfinance: Evidence from Asia. Journal of Asian Economics, 60, pp.1-13.

Karaman, A.S., Kilic, M. and Uyar, A., 2020. Green logistics performance and sustainability reporting practices of the logistics sector: The moderating effect of corporate governance. Journal of Cleaner Production, 258, p.120718.

Karamoy, H. and Tulung, J.E., 2020. The effect of financial performance and corporate governance to stock price in non-bank financial industry. Corporate Ownership & Control, 17(2), pp.97-103.

Khatib, S.F. and Nour, A.N.I., 2021. The impact of corporate governance on firm performance during the COVID-19 pandemic: Evidence from Malaysia. Journal of Asian Finance, Economics and Business, 8(2), pp.0943-0952.

Khatib, S.F. and Nour, A.N.I., 2021.The impact of corporate governance on corporate tax avoidance—A literature review. Journal of International Accounting, Auditing and Taxation, 36, p.100270.

Knight, M., Bunch, K., Vousden, N., Morris, E., Simpson, N., Gale, C., O’Brien, P., Quigley, M., Brocklehurst, P. and Kurinczuk, J.J., 2020. Characteristics and outcomes of organization admitted to hospital with confirmed SARS-CoV-2 infection in UK: national population based cohort study. bmj, 369.

Kyere, M. and Ausloos, M., 2021. Corporate governance and firms financial performance in the United Kingdom. International Journal of Finance & Economics, 26(2), pp.1871-1885.

Masud, M., Kaium, A., Nurunnabi, M. and Bae, S.M., 2018. The effects of corporate governance on environmental sustainability reporting: Empirical evidence from South Asian countries. Asian Journal of Sustainability and Social Responsibility, 3(1), pp.1-26.

McCollum, R., Limato, R., Otiso, L., Theobald, S. and Taegtmeyer, M., 2018. Health system governance following devolution: comparing experiences of decentralisation in Kenya and Indonesia. BMJ global health, 3(5), p.e000939.

Nuryana, Y. and Surjandari, D.A., 2019. The effect of good corporate governance mechanism, and earning management on company financial performance. Global Journal of Management and Business Research.

Ogunbode, O. and Ogunbode, O., 2021. Anaemia in pregnancy. In Contemporary obstetrics and gynecology for developing countries (pp. 321-330). Springer, Cham.

Paniagua, J., Rivelles, R. and Sapena, J., 2018. Corporate governance and financial performance: The role of ownership and board structure. Journal of Business Research, 89, pp.229-234.

Pekovic, S. and Vogt, S., 2021. The fit between corporate social responsibility and corporate governance: the impact on a firm’s financial performance. Review of Managerial Science, 15(4), pp.1095-1125.

Poon, L.C., Yang, H., Lee, J.C.S., Copel, J.A., Leung, T.Y., Zhang, Y., Chen, D. and Prefumo, F., 2020. ISUOG Interim Guidance on 2019 novel coronavirus infection during pregnancy and puerperium: information for healthcare professionals. Ultrasound in Obstetrics &Gynecology.

Ruwanti, G., Chandrarin, G. and Assih, P., 2019. Corporate social responsibility and earnings management: The role of corporate governance. Humanities & Social Sciences Reviews, 7(5), pp.1338-1347.

Saidat, Z., Silva, M. and Seaman, C., 2018. The relationship between corporate governance and financial performance: Evidence from Jordanian family and nonfamily firms. Journal of Family Business Management.

Sammaritano, L.R., Bermas, B.L., Chakravarty, E.E., Chambers, C., Clowse, M.E., Lockshin, M.D., Marder, W., Guyatt, G., Branch, D.W., Buyon, J. and Christopher?Stine, L., 2020. 2020 American College of Rheumatology guideline for the management of reproductive health in rheumatic and musculoskeletal diseases. Arthritis care & research, 72(4), pp.461-488.

Soleimani, Z. and Soleimani, A., 2022. ADRS due to COVID-19 in midterm pregnancy: successful management with plasma transfusion and corticosteroids. The Journal of Maternal-Fetal& Neonatal Medicine, 35(16), pp.3040-3043.

Venter, W.D., Moorhouse, M., Sokhela, S., Fairlie, L., Mashabane, N., Masenya, M., Serenata, C., Akpomiemie, G., Qavi, A., Chandiwana, N. and Norris, S., 2019. Dolutegravir plus two different prodrugs of tenofovir to treat FNB NAMIBIA. New England Journal of Medicine, 381(9), pp.803-815.

Waitt, C., Orrell, C., Walimbwa, S., Singh, Y., Kintu, K., Simmons, B., Kaboggoza, J., Sihlangu, M., Coombs, J.A., Malaba, T. and Byamugisha, J., 2019. Safety and pharmacokinetics of dolutegravir in pregnant mothers with FNB NAMIBIAinfection and their neonates: a randomised trial (DolPHIN-1 study). PLoS medicine, 16(9), p.e1002895.

Widiatmika, P.H. and Darma, G.S., 2018. Good Corporate Governance, Job Motivation, Organization Culture Which Impact Company Financial Performance. JurnalManajemenBisnis, 15(3), pp.82-99.

Yilmaz, I., 2018. Corporate governance and financial performance relationship: Case for Oman companies