The Impact of Applying Corporate Governance Principles In Activating Internal Control Systems To Enhance The Competitive Advantage of Yemeni Commercial banks

Abstract

Bank governance is particularly important in today's business and financial agenda For the benefit of the banking sector in reducing the risks related to financial and administrative corruption faced by banks and countries, Raise the level of effectiveness of the regulatory and regulatory methods adopted and the performance of the regulatory bodies based on them, Attract foreign investment and encourage local capital to invest in projects Protect shareholders and work on transparency, accuracy, clarity and integrity in the financial statements issued by banks This creates an opportunity to strengthen the strategic role of internal control in banks. This research aims to measure the impact of the application of corporate governance principles in the activation of internal control systems, in order to enhance the competitive advantage in commercial banks operating in the Republic of Yemen. To achieve this, the study relied on a descriptive analytical approach. The data were collected using a questionnaire list distributed to a random sample of 135 individuals.

The study found several results, the most important of which: That most of the members of the study sample disagree with the statements of the level of application of the principle of the role of corporate governance stakeholders in commercial banks, as well as the principle of transparency and disclosure of corporate governance in commercial banks, as well as the principle of the availability of responsibility of the Board of Directors of corporate governance in commercial banks, as well as the level of enhancement of competitive advantage in commercial banks. There is a statistically significant moral impact of the application of the principle of the role of stakeholders, the principle of transparency and disclosure and the principle of the responsibility of the Board of Directors in activating internal control systems to enhance competitive advantage in commercial banks operating in the Republic of Yemen.

Finally, the study concluded with several recommendations, the most important of which is the need to apply international corporate governance standards and principles in Yemeni commercial banks and to update them in line with economic, technological and social changes. Strengthen the role of internal control in Yemeni commercial banks, and provide the necessary capabilities and resources to implement them effectively and independently, and evaluate their performance periodically and continuously. Improve the level of disclosure and transparency in Yemeni commercial banks, and provide financial and administrative information in an accurate, reliable and compliant with accounting and professional standards. Conducting more studies and research in the field of corporate governance and internal control in Yemeni commercial banks, comparing them with commercial banks in other countries, and exchanging experiences and successful practices in this field.