Vol. 2, Issue 8, Part I (2016)

Abstract
The objective of this study is to determine the effect of corporate governance on financial performance of Ethiopian commercial banks. The annual reports of sample commercial were the sources of data. The proxies used for financial performance are return on equity and return on asset. Content analysis was applied to determine the level of disclosure using un-weighted checklist. Accordingly, the level of disclosure practice is measured by the ratio of disclosure score of a commercial bank to its t total obtainable score. In addition, correlation and regression analyses were made to determine the relation between corporate governance and financial performance. The results indicate that disclosure practice, board size, board gender diversity and ownership type have no significant impact on the financial performance of Ethiopian commercial banks. However, asset size and capital structure have significant effect on both on the return on equity and return on asset