To improve corporate governance practices of bank and microfinance institutions, the Cambodia National Bank has developed and imposed governance practices regulation for the sector. The current study investigates the current board governance practices of the sector and determines how the practices impact on financial performance. In addition, it tests the validity of relevant corporate governance theories to the context and the benefits of the regulation. The findings indicate that current board governance practices of the sector meet the minimum requirements of the regulation and, to a great extent, have positive impact on financial performance. The relevant theories validated and supported in the context of Cambodia banks and microfinance institutions.
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