Factors That Determine Corporate Governance Of Ethiopian Electric Power Corporation In Ethiopia

Abstract

As the different literatures document shows the corporate governance has significant impact on both the firm performance and stockholder interests. Having this; aim of the research is to identify the main factors affecting the corporate governance of Ethiopian Electric Power Corporation, to measure the extent to which these factors exert impact on corporate governance of Ethiopia Electric Power Corporation (EEPCo., to rank the factors according to their degree of influence on corporate governance and finally to determine the relationship corporate governance of EEPCo and firm performance, measured by regression model with different independent variables such as Firm size, Customer Demand, Power loss, fixed asset not capitalized, Audit Quality, Financial characteristics, Growth rate and Tobin‟s Q. The audit annual financial reports of EEPCo is used covering period of twelve years (1994-2006E.C). The time series data collected is analyzed by using descriptive and simple regression analysis. Explanatory research design and purposive sampling method (for EEPCo.) is used for the study. The study has found out that: Firm size, customer demand, power loss, and financial characteristics have a negative influence with different level of significance on corporate governance; but, remaining variable influence is found to be direct.