Abstract:

This Study aims to investigate the effect of the application of Corporate Governance (CG) codes on the performance of Jordanian banks, and to achieve the objectives of the study, the researcher adopted a survey to disclose the application of CG guidelines issued by the Amman Securities Commission as an indicator to measure the application of CG which contains six sets of rules. The finding of the research indicates the success of corporate governance in Jordanian banks requires the application of its rules properly, and this depends on the control of the Central Bank of Jordan (CBJ) and the banks’ management. In the same context, this research finds that there are relationships between Corporate Governance codes and the bank performance but they are different in significant. The study concluded that a set of CG rules related to banks commitment to corporate governance has ranked in terms of the application of the rules of CG as follows: rules related to commitment to corporate governance, rules related to control environment, rules related to treatment of shareholders, rules related to the functions of the board of directors, rules related to transparency and disclosure, and the rules related to board committees respectively. Key Words: Corporate Governance, Governance Practices, Jordanian Banks, Banks Performance, Jordan.

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