Stakeholders’ Perception as to Corporate Governance Practice Possible Obstacles and Enablers in Ethiopian

The purpose of this study was to investigate stakeholders’ perceptions as to Good corporate governance practice possible obstacles and enablers in Ethiopian share companies by taking into account seven stakeholder groups four from internal and three from external. And the stakeholders’ perception survey as to possible obstacles and enablers of good corporate governance practices in Ethiopian share companies was based on data collected from 191 respondents. The result revealed perception differences in both non-parametric tests of Kruskal-Wallis and Mann-Whitney tests on the possible obstacles affecting the practice of good corporate governance in the country. The study identified weak legal controls and poor quality of enforcement; poor financial and non-financial disclosure; and weak infrastructures of financial institutions are the major possible obstacles those impair good corporate governance. Further, as to the possible enablers of good corporate governance practices the study identified using training and other means of support; establishing an institute of directors for training; raising awareness and education for Chief Executive Officers, directors and board members; participating in international events, conferences, meetings and committees dealing with corporate governance are amongtop ranked enablers. The result indicated no statistically significant difference in stakeholders’ perception scores in both non-parametric tests carried out among seven stakeholders’ groups (Kruskal-Wallis Test) and between internal and external stakeholders group (Mann-Whitney Tests). The study concluded corporate governance practices in share companies suffered the problems of up-to-date regulatory framework. that results unable to ensure quality and adequate enforcement up on violation of applicable laws, weak legal controls and poor quality of enforcement, poor financial and non-financial disclosure, and weak infrastructures of financial institutions which can be eradicated by using training and other means of support and awareness creation.