The Role of Corporate Governance on the Reduction of the Global Financial Crisis Implications: Evidence from Banking Sector of Jordan

摘要

This study aims to determine the role of Corporate Governance on the reduction of the global financial crisis implications on the Banking Sector of Jordan; in addition to that, it aims to review the latest CBJ regulation and directions which were issued during 2009 in order to motive the Jordanian Banks to expand the credit and lending to the public. In this study the researcher has used the CG Codes Pillars for Banks, and the monthly reports issued by CBJ. In order to reach the desired results, a postal questionnaire was sent to all of the risk managers and internal audit managers operating in the Jordanian Banks. The research results show that our respondents have good level of education and experience, a multiple regression test was carried out to test the relationship between the independent variables: Commitment to Corporate Governance, Functions of the Board of Directors, Board Committees, Control Environment, and Transparency and Disclosure codes, and the dependent variable: Reduction of the global financial crisis implications.; independent variables are able to explain nearly 77% (R=0.765 P< 0.000) of the variance in Reduction of the global financial crisis implications, also it was found that calculated F = 32.675 is significant at 0.05 which means that there is an effect of independent variables on dependent variable. This indicates that there is a significant positive relationship between independent variables and (dependent variable). Thus, we reject the null hypotheses that assumed there is no significant role of independent variables. Meanwhile the coefficients factors and (T value at 0.05 level of significant) support this suggestion when taking the independent variable jointly, By using the Stepwise analysis, the study has found that the most independent variable which plays the effective role on the reduction of the global financial crisis implications was the Transparency and Disclosure Pillars with (R = 0.657). The study has found that the economy does not get the expected benefits from CBJ regulation. This study like other cross sectional studies is not free of limitations.