Total Quality Management (TQM), employee outcomes (EMO), ability motivation-opportunity (AMO), sustainable Organizational performance (SOP), environment uncertainty (EU), Palestinian service sector رسالة ماجستير

Abstract

The study aimed to identify the reality of implementing corporate governance principles by Palestinian banks, identify the obstacles to implementing corporate governance by banks, and reveal the level of impact of corporate governance implementation on performance in banks. In this study, the researcher used the descriptive analytical method, and relied on the quantitative method, due to its relevance to the nature of the study, as the descriptive method is often associated with studies of the social and human sciences, and the descriptive method depends on describing the phenomenon as it is, and collecting data and information about it. The study population includes all 14 Banks operating in Palestine, as for the study sample, it consisted of 7 commercial and Islamic banks operating in Palestine. And it consisted of an intentional sample that included Board of Directors, General Managers, Financial Managers, Branch Managers, Compliance, Anti Money Laundering (AML) and Risk Managers, Financial Analysis Managers, Department Heads and Executive Managers in (Quds Bank, Bank of Palestine, Palestine Islamic Bank, Arab Islamic Bank, Safa Bank, National Bank, Palestine Investment Bank), and the sample consisted of (57) directors and department heads. The results of the study indicated that the reality of implementing the principles of corporate governance in local banks came to a very high degree, with an arithmetic average of (4,324195), and a standard deviation of (0.627104), While the highest averages were in the degree of banks' commitment to disclosure, integrity and transparency with an arithmetic average (4.432025) and a standard deviation (0.561369), followed by the degree of banks' commitment to the equal rights of shareholders and investors with average (4.288673) and a standard deviation XI (0.641013), followed by the degree of banks' commitment to the responsibilities of their boards of directors to practice governance rules with an arithmetic average (4.251886) and a standard deviation (0.678929). The results also indicated that the obstacles of implementing governance in banks were high, with an arithmetic average of (3.526317), and a standard deviation of (1.09658). On the other hand, the results indicated that there is a statistically significant relationship at the significance level 0.05 ≤ α between the implementation of corporate governance principles in banks and the quality of performance and that there is a good relationship through the results of Pearson correlation coefficient, also the value of beta was (36.8%). The study recommended the following: 1. The necessity for banks to educate their employees about the importance of governance and its positive role in achieving competitive advantage, through awareness campaigns on the concepts of governance and its effective impact, and through holding a training programs on how to take advantage of the dimensions of implementing governance that enable employees to enhance and develop their capabilities to achieve efficiency and reach the stage of distinguished performance. 2. Enhancing knowledge and expertise of the board members by organizing workshops and courses with experts specialized in the science of good governance. 3. Inviting universities to offer a course on governance in the Faculty of Commerce and Law, this would support the Palestinian student before entering the labor market with a high level of culture on the subject and contribute in raising its level within the institutions. XII 4. The necessity of benefiting from the successful international experiences, both Arab and foreign, in setting appropriate plans to implement the rules of governance, such as establishing a specified institution in Governance, e.g. JIOD (Jordan Institute of Directors). 5. Work on developing risk, compliance and audit functions beyond their routine work, as the implementation of governance instructions in a correct manner constitutes a source of strength for the control departments in order to enhance the role of risk management, and consider it a basic source for measuring the extent of the bank’s commitment. 6. Working on developing a rating system for companies and institutions, depending on their extent of implement Governance principles and the relevant Basel Committee Principles. 7. Enhancing the role of other regulatory bodies to ensure bilateral control on the implementation of governance. 8. Reviewing the level of clarity of regulations, and update laws and legislation that stipulates corporate governance by Palestinian Monetary Authority (PMA) to enhance the effectiveness of the regulatory and supervisory systems. 9. The necessity of urging banks to provide special periodical brochure highlighting the level of their commitment to governance principles in order to increase investors’ confidence.