Corporate Governance

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Journal of Money, Investment and Banking ISSN 1450-288X Issue 25 September, 2012 © EuroJournals Publishing, Inc. 2012 http://www.journalofmoneyinvestmentandbanking.com

The Availability of the Dimensions of Corporate Governance and its Impact in Promoting the Organizational Learning in Commercial Banks Operating in Jordan Eyad Taha Al-Rawashdeh Tafila Technical University College of Administrative & Financial Sciences Mailbox Post. Office: 179 Tafila, 66110, Jordan Abstract The study aimed at recognizing the availability of the dimensions of corporate governance and its impact in promoting the organizational learning in commercial banks operating in Jordan. To achieve the objectives of this study, a questionnaire was developed for data collection. The study sample was composed of (248) subjects, where Statistic Package for Social Science, Version 16 (SPSS, 16) was adopted to analyze the questionnaire data. The most important findings of this study were as the followings 1. The perceptions of managers in commercial banks toward corporate governance came at medium level, while their perceptions toward the dimensions of organizational learning were at a high level. 2. There was significant effect with statistical indicators for the dimensions of the corporate governance on the organizational learning among responders. The study recommends the need to work on creating an organizational culture focused on the characteristics of corporate governance, through the development of skills of workers and provide strategic vision and clear the banking sector and its objectives, because of their impact on the process of organizational learning. Keywords: Corporate Governance, Organizational Learning

Introduction
The practical experience in many countries has demonstrated the importance of serious commitment to the concept of good corporate governance, as a result of large avalanches of businesses — such as the famous scandal of Bank of credit and commerce international, and savings and loan banks disaster in the United States, This deteriorating situation began to reveal the bankruptcy of Enron Corp. -the giant in energy areas- and WorldCom the second largest communications company in the world and Xerox Corporation the leading photocopiers and Merck the giant in medicine industry, leading to the collapse of prices for shares in companies, so the major stock indexes Dow Jones for the thirty great industrial companies and NASDAQ for the top 500 companies in technology field made losses of approximately $ 8.6 trillion (Khalil, 2005). In Britain, a report has been issued entitled "the financial aspects of corporate governance" after the failure of a group of public companies (Cadbury Report,1992 ), Auditing Standards Board also issued instructions to British Auditors how to prepare their reports to

Journal of Money, Investment and Banking - Issue 25 (2012)

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make sure that the application procedures for corporate governance (Catherine, et al., 2003), after that Jordan Securities Commission issued a draft guide for the rules of governance of the public shareholding companies in Amman stock exchange In September 2006 so as to promote economic progress (Middle East journal, 2003). Alamgir (2007) sees that the governance in the banking sector means performance monitoring by the Board of Directors and senior management of the Bank and the protection of the rights of shareholders and depositors, as well as taking care of the relationship of these foreign parties, which are determined through the regulatory framework and the powers of the regulatory body. And governance in banking system applies both to public banks or private banks or the joint. Freeland (2007) mentions that the essential elements of corporate governance in the banking system are represented in two groups: the first is internal parties who are shareholders and Board of Directors and executive management and the internal auditors and supervisors. But the second...
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