Internal Controls in Ensuring Good Corporate Governance in Financial Institutions

Kosmas Njanike (), Margaret Mutengezanwa () and Fungai B. Gombarume ()
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Kosmas Njanike: Bindura University, Zimbabwe
Margaret Mutengezanwa: Bindura University, Zimbabwe
Fungai B. Gombarume: Bindura University, Zimbabwe

Annals of the University of Petrosani, Economics, 2011, vol. 11, issue 1, 187-196

Abstract: This paper assessed factors that influence the internal controls in ensuring good corporate governance in financial institutions in developing economies with special reference to Zimbabwe. The research paper assessed how lack of internal controls affected good corporate governance and aimed to bring out elements of good corporate governance. It emerged that failure to effectively implement internal controls contributed significantly to poor corporate governance. The study discovered that internal control system overrides and the issue of “fact cat” directors also contributed to poor corporate governance. The study recommended that there is need for the board of directors to guarantee an organizational structure that clearly defines management responsibilities, authority and reporting relationships. There is also need to ensure that delegated responsibilities are effectively carried out to ensure compliance with internal controls of the financial institution concerned.

Keywords: internal controls; corporate governance; ethical behaviour (search for similar items in EconPapers)
JEL-codes: G21 G28 G30 G38 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pet:annals:v:11:y:2011:i:1:p:187-196

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