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CORPORATE GOVERNANCE IN NEPALESE FINANCIAL SECTOR: DOES POLICY MATTER?
The study examines insiders' perspectives on the determinants of corporate governance in the Nepalese financial sector. For this, we use a 5-point Likert scale questionnaire developed by CLSA, modified and contextualized to Nepalese setting. The study reveals that whereas accountability, discipline, and transparency significantly and positively promote corporate governance, factors like fairness, responsibility, independence and social awareness have been unable to explain corporate governance. The study also evidences positive and significant role of classification policy of the central bank in promoting better governance. We suggest that policy makers need to revise regulation for promoting social awareness through more mandated public disclosures of information, and top-management of the companies develop more responsive work-conditions and provisions to promote fairness in the organization.