Implications of Corporate Governance on Banking System Stability in Nigeria: 2004 – 2014 (original) (raw)
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Journal of business and economic management, 2019
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ijetrm journal , 2021
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EFFECT OF CORPORATE GOVERNANCE MECHANISM ON THE FINANCIAL PERFORMANCE OF BANKS IN NIGERIA
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Banks are the backbones of any economy therefore it is of immense importance for economies to possess a healthy and buoyant banking system with effective corporate governance practices. In Nigeria, the Central Bank replaced the past governance codes with the CBN code (2012). Therefore this study examines corporate governance and financial performance in Nigerian banks, using this new code. The main issues in this study are: what is the relationship between board size and financial performance of banks in Nigeria? What is the effect of the proportion of non-executive directors on the financial performance of banks in Nigeria? To what extent is the corporate governance disclosure of banks in Nigeria in compliance to CBN governance code (2012)? Does a relationship actually exist between banks that disclose on corporate governance and their financial performance in Nigeria? These questions were answered by examining the yearly-published reports of the listed banks in Nigeria. In examini...
A FIRM-LEVEL ANALYSIS OF CORPORATE GOVERNANCE AND BANK PERFORMANCE IN NIGERIA
This study examines the relationship between corporate governance and firm performance with particular reference to the United Bank for Africa Plc, Nigeria. It adopts three corporate governance mechanisms (board size, board composition and the number of board committees) and three performance variables (Return on Investment, Profit Margin and Return on Equity). Thus, panel data (from the secondary source) were collected on the corporate governance mechanisms and performance variables over a period of five years spanning from year 2006 to 2010. The multiple regression technique was used to analyze the data. The study finds that the number of board committees has significant negative relationship with Profit Margin. The size of the board does not significantly affect the return on shareholder's equity and investment in the company and lastly, the presence of more number of independent directors on the board does not significantly affect firm performance. The study recommends amongst others that bank management should establish optimum board size to accommodate diverse backgrounds and skill mix appropriate to discharge their duties to the firm. Again, banks should not waste effort in engaging more independent directors on its board but however, endeavour to engage more executive directors who possess cognate experience in the industry on its board.
i-manager’s Journal on Management, 2013
Objective The study objective is aimed at finding the relationship between corporate governance bank distress in deposit money banks. The research design adopted in this paper is the case study method, in other to have an intensive insight of the subject matter. Methodology Primary data was used specifically the survey technique. The method that was used in the presentation of data in this study is the Statistical Package for Social Sciences (SPSS) which contains all the necessary and important statistical technique for data analysis.Findings For testing the hypothesis, correlation analysis which measures the degree of relationship between variables was used to analyze the result generated from the questionnaire. The evidence shows that corporate governance has no significant improvement on the prevention of bank distress but has significantly improved the performance of the Nigerian banking sector. Recommendation We therefore recommend that banks should demonstrate strong internal policies to identify and manage conflict of interest and zero tolerance posture against cases of unsound corporate governance practices.