Corporate governance and its impact on financial risk management
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Date
2020
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Publisher
Oum-El-Bouaghi
Abstract
After the financial crises and collapses that many countries from East Asia, Latin America and Russia have witnessed, which were triggered by financial and administrative corruption, unethical abuses, weakness of legislations and laws, and the failure of traditional methods to prevent the causes of those collapses, interest in the concept of corporate governance has grown and the belief that it will affect on the effectiveness of the financial risk management in the company, and the integral direct relationship between them. We have seen the truth about this in previous studies in many countries, such as Malaysia and Vietnam.
Our study aimed to test the extent of the application of corporate governance in Algeria and how it affect financial risk management, by studying the opinion of targeted sample of the employees of the Algerian Popular Loan Bank in Oum Elbouaghi state.
Where the findings showed the existence of a direct relationship between the corporate governance and financial risk management, but this relationship is weak due to the weak commitment to apply the principles of corporate governance, and we have also made some recommendations that may contribute to change for the better.
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Keywords
Corporate governance, Financial risk management