The Role of Applying Corporate Governance Rules in Market Value: The Interactive Role of Digital Culture of Selected Commercial Banks in Baghdad Governorate

Ahmed Abdulkadhum Abdulabass; Jassim Muhamad; Maher Adil Abdulhussein Altwelee

doi:10.58709/niujms.v12i3.2650

Ahmed Abdulkadhum Abdulabass College of Agriculture, University of Kufa, Najaf, Iraq
Jassim Muhamad Al Turath University, Iraq
Maher Adil Abdulhussein Altwelee College of Computer Science and Mathematics, University of Kufa, Najaf, Iraq

DOI: https://doi.org/10.58709/niujms.v12i3.2650

Abstract

The current research is designed to measure and analyze the interactive effect of digital culture with its two dimensions (adaptive culture and high performance culture) on the relationship between corporate governance rules as an independent variable with its dimensions of shareholder rights, fulfilling stakeholder requirements, board adherence to business ethics and rules, and commitment to disclosure and transparency principles, and market value of banks as a dependent variable with its dimensions of accounting and economic metrics. The main question represents the study problem, which is: “What is the role of digital culture in changing the relationship between the rules of corporate governance and the market value of commercial banks in the Baghdad Governorate?” The study was done within a group of commercial banks operating in Baghdad Governorate. The study population comprised the managers and financial and supervisory staff. Data were collected via administration of an electronic survey questionnaire developed on a five-point Likert scale. (123) questionnaires were returned and were valid for statistical analysis. To meet the goals of the study, the data were analyzed by advanced statistical analysis utilizing SPSS v.28 and AMOS v.26. The study applied descriptive statistics (means, standard deviations and coefficient of variation), confirmatory factor analysis (CFA) and structural equation modeling (SEM) to explore the direct and interacting paths of influence. The study established a number of results, the most important of which is that the role of digital culture in moderation generates a qualitative strategy change that amplifies and enhances the good impact of governance principles in improving the market value of banks. Thus, the main recommendations pointed out the importance for banks to follow an integrated approach that merges strict compliance with corporate governance principles and the flexibility of digital culture. The use of digital technology as interactive channels is able to promote disclosure and transparency and to meet investor expectations.

Keywords: Principles of Corporate Governance, Market Value of Bank, Digital Culture, Sample of Commercial Banks in Baghdad Governorate, Iraq.