Abstract:
In the worst financial crisis, the banking sector faces to more difficulties.
According to the studies that difficulties build on the lack of corporate
governance in banks and companies. Purpose of this study was to identify the
impact of Corporate Governance for the Banking Profitability in Sri Lanka.
Board size, Board Ownership, Management ownership and the Board balance
were used as the determinant factors and the Return on Assets was used for
the performance indicator. Nine listed Commercial Banks over nine years
were selected for the analysis. Descriptive analysis, Pearson Correlation and
the regression analysis methods were used to find out relationship between the
corporate governance and banking performance. One main model constructed
under the regression analysis. Result of the analysis were found that there was
significant relationship between Board size and the Board ownership. There
was no significance relationship between Management Ownership and the
Board Balance. According to the analysis the overall model is significant and
the Corporate Governance is significantly affected to the Profitability of the
banking industry in Sri Lanka.
