Corporate Governance Strategy and its Role in Improving the Sustainable Financial Performance of Iraqi Banks

Abstract

This study aims to demonstrate the role of corporate governance strategy and its effectiveness in improving sustainable financial performance in Iraqi banks. Traditional indicators are ineffective as they rely solely on the financial perspective. These indicators fail to consider current and future values and aspects such as quality, innovation, development, and sustainability, which directly impact customer satisfaction within the economic unit's environment. Furthermore, the absence of a sustainable strategic dimension and the lack of knowledge regarding achieving objectives pose challenges. The study sample consists of the four most active commercial national banks listed on the Iraq Stock Exchange. A total of 80 questionnaires were utilized, based on the absolute balances and income statements spanning from 2018 to 2021. Various statistical methods, including the use of the SPSS program, were employed to analyze the data and examine the relationship and impact between the research variables. The research yielded several conclusions, with the most significant being a positive and strong correlation between corporate governance and its principles, as evidenced by the results of the statistical analysis. Additionally, there was a correlation between sustainable financial performance and its indicators within the sample banks studied.