Journal of Business & Financial Affairs

Evolution of Corporate Governance Practices and Conventional Banks Profitability

Abstract

Khan N and Iqbal N

This study has been conducted to discover the good governance practices influence on profit of conventional banking system. Prime aim is to discover the application of these practices in the corporation for betterment. This research based on mixture of primary and secondary data. Sample for primary data collection for study is different conventional banks of Pakistan. Observation method and structured questionnaires is used to obtain the data from respondents (banks employees). Obtained data is analyzed through statistical software SPSS. Regression analysis is done to check out the effects of corporate governance and its determinants on profitability of conventional financial institution. So findings possess that banks profit tend to be enhance with the espousal of ethical practices in corporate culture. Study concluded that if financial institution behave ethical manner, socially obliged and invest for well being of society after that they will get and enhance profit from social capital in addition to be considered as socially responsible corporations by adopting regulatory system aptly.