Disclosure of Corporate Governance in Banking Sector of Bangladesh

Abstract

Securities and Exchange Commission in Bangladesh set some rules about the Corporate Governance in 2006 and advises the listed company to follow those rules to ensure proper Corporate Governance. The main purpose of this study is to know about the disclosure of checklist of Corporate Governance in the banking sector of Bangladesh. Certain analysis was done to conduct this study like- dichotomous and partial compliance to find out the Overall disclosure Index. Chi-square test and cross tabulation are used to find relation between certain variables. Besides, Correlation and regression was performed to analysis those factors that influences the disclosure of Corporate Governance. Annual report of 2011 for 30 banks enlisted under Dhaka Stock Exchange (DSE) has been used to conduct this study. Certain results like higher proportion of independent directors’ gives higher disclosure of corporate governance and more insider ownership results less corporate governance have been found. Recent scam in banking sector is also the result lack of corporate governance in Bangladesh. This research can be used to minimize that scam in the corporate culture. This study creates values not only to those banks but also to the other stakeholders who are related to this. Investors and creditors decision can be influenced by this study.

Keywords:Corporate Governance, Dhaka Stock Exchange (DSE), Securities & Exchange Commission (SEC), Disclosure, Banks etc.