Corporate Governance on Performance of Banks in Nigeria

By

CHAPTER 1: INTRODUCTION3

Background of the study3

Problem Statement4

Research Aims4

Research Objectives5

Research Questions6

CHAPTER 2: LITERATURE REVIEW7

CHAPTER 3: METHODOLOGY14

Research Design14

Quantitative Research Approach15

Basis for Analysis16

Sample Size17

Deductive Approach17

Positivistic Approach18

Primary Research18

Research Instrument19

Likert Scale20

Data Analysis20

Secondary Research21

Ethical consideration21

Limitations of the Research22

PILOT STUDY24

Pilot Study findings25

Conclusion37

Recommendations37

References39

CHAPTER 1: INTRODUCTION

Background of the study

Corporate financial reporting is a source through which vital information can be gained by scores of policy makers who may belong to both corporate as well as non-corporate economy sectors. These scores of policy makers may include shareholders, society, management, government and creditors. For the effective and efficient management this information is of utmost importance and it needs attention in practices. Particularly, it can be iterated that when there is improved observations and when there is the measurement and crystal clear disclosure of operation then it signifies a dynamic, competitive and effective financial institution.

When a country is in progress and is in developing country then it cannot bear the burden of dishonest and unorganized functioning of the financial institution. For a developing country like Nigeria, the consequences of a failed institute (especially if we take into consideration the multiplier effects that a financial institute may cause on the real sector of the economy) would be very costly that it may become unacceptable and unbearable. This in turn erodes the confidence and trust that people have on different corporate institutes. When in a financial institution there is a governance system that is ineffective and that may result in corporate failure then it not only creates detrimental effects for shareholders but it also shows its negative influence on employees, consumers, suppliers of the organization and on the nation as a whole. Hence, in such a situation governance system is needed that promotes and gives rise to values that are ethical, professionalism and transparent application of best practices.

There are many institutes financial and non-financial those adopt this phenomenon of corporate governance for the better and effective management of the organization and institutes. Absence of this element of corporate governance may result in chaos and mismanagement. The purpose of this research study also revolves around this concept of corporate governance. In order to attain this purpose banking sector of Nigeria is considered. The following part discusses various facets of this topic and specific objectives of this research study.



Problem Statement

The banking system of Nigeria has faced many changes over the period of time with regard to the number of institution, structure of ownership and with regard to the depth and breadth of the operations. There are various reasons that have derived these changes in the banking sector of the Nigeria. These various reasons include: opportunities that produced by the deregulation in the financial sector, adherence to the guidelines of international standards, globalization of operations, affect of worldwide economic downturn, and advancements in technology. Developments that took place in the Nigerian banking industry shows that there was no good corporate governance so it was the focal reason behind the dismal performance of the banking industry as the catalyst for ...