Financial Regulation: Treatment or Threat? A Review of Microfinance Banking in Nigeria (Published)
This study investigates the effect of financial regulation on the performance of microfinance banks in Nigeria, focusing on capital adequacy regulation, risk management regulation, and supervisory policies. Microfinance banks play a critical role in financial inclusion and poverty alleviation; however, stringent regulatory frameworks may simultaneously enhance institutional stability and constrain outreach. Employing an ex-post facto research design, the study analyzed secondary data from selected national and state microfinance banks over a six-year period. The independent variables included capital adequacy ratios, risk management indicators, and supervisory policy metrics. Descriptive and multiple regression analyses were conducted using SPSS version 26. The findings reveal that capital adequacy regulation (β = 0.482, p < 0.05), risk management regulation (β = 0.371, p < 0.05), and supervisory policies (β = 0.426, p < 0.05) each exert a positive and statistically significant effect on microfinance bank performance. These results indicate that financial regulation, when effectively implemented, serves as a stabilizing force that enhances operational efficiency, depositor confidence, and institutional resilience. The study concludes that regulation functions as a treatment rather than a threat to microfinance bank performance, though a balanced, tiered approach is recommended to prevent overburdening smaller institutions. The research contributes to policy discourse by highlighting the dual role of regulation in promoting financial stability and inclusive growth within the Nigerian microfinance sector.
Keywords: Bank Performance, Corporate Governance, Microfinance Banks, capital adequacy regulation, risk management regulation, supervisory policies
Corporate Governance and Financial Performance of Some Selected Commercial Banks in Nigeria (Published)
This paper investigates the effects of corporate governance mechanisms on selected Nigerian banks’ financial performance from 2018 to 2024, focusing on the impact of board structure, audit committee effectiveness, risk management practices, and governance disclosure on profitability, asset quality, and credit risk management. A mixed-methods research design is adopted for this study, complementing quantitative analysis of financial statements and governance reports with insights from regulatory filings and corporate disclosures. Results show that all governance mechanisms are significant, yet distinct, drivers of financial performance, with risk management practices emerging as the most crucial determinant. Boards with diverse expertise, combined with active audit committees, robust risk frameworks, and transparent reporting by firms, go hand in hand with profitability and reduction of non-performing loans. Based on these findings, this study supports theoretical hypotheses within Agency, Stakeholder, Resource-Dependence Theories while extending the previous literature on the role of board diversity, qualitative audit committee engagement, and disclosure as a source of strategic value. This suggests an integrated approach to governance as an important lesson in teasing out how to prosper in Nigeria’s sometimes hostile banking environment, providing lessons that will be useful in practice for bank management seeking to build stronger institutional performance and resilience, regulators, and other policy actors.
Keywords: Bank Profitability, Board Structure, Corporate Governance, Financial Performance, Nigerian Banks, Risk Management, audit committee effectiveness, governance disclosure
Corporate Governance Mechanisms and Financial Performance of Listed Insurance Firms in Nigeria (Published)
This study examines the effect of corporate governance mechanisms on the financial performance of listed insurance firms in Nigeria. Focusing on board size, board independence, board gender diversity, and audit committee independence, the study uses audited financial statements from all 17 listed insurance companies with complete data from 2020 to 2024. Employing an ex-post facto research design and panel data analysis, the study applies descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression to assess the relationships between governance characteristics and Return on Assets (ROA). The findings reveal that board gender diversity and audit committee independence significantly enhance ROA, while board size and board independence do not have a statistically significant effect. The study highlights the importance of board composition quality, particularly gender diversity and independent audit oversight, in promoting firm performance. These results provide practical insights for regulators, investors, and corporate boards in optimizing governance structures for sustainable growth.
Keywords: Board independence, Board size, Corporate Governance, Financial Performance, audit committee independence, board gender diversity
Implication of Cost Structure on Financial Sustainability in Light of Corporate Governance of Listed Manufacturing Companies in Kenya (Published)
Kenya’s manufacturing sector has made strides; however, it continues to grapple with a range of financial difficulties issues to enhance the sector’s competitiveness and sustainability in the long run. Understanding optimal cost structures and their variability is vital for financial sustainability. This study explores the significance of cost structure in light of corporate governance and its impact on the financial sustainability of manufacturing companies in Kenya. The study used quantitative research design and panel data analysis to examine the relationships between cost structure and financial sustainability in light of corporate governance. The targeted population included manufacturing, construction and allied publicly listed companies at Nairobi Securities Exchange. Out of the 13 listed companies 11 where analyzed that were actively trading at the NSE for the period of the study. The results suggest that production cost and operation cost was 71.70% and 39. 38% to sales respectively which is higher than the average in Africa region. Not to mention than Africa region has the highest cost structure in the world. On average, production costs contribute more to the cost structure compared to operational costs, highlighting their importance in managing total expenses. The results on financial sustainability showed an average O-Score of 2.8025 suggests that manufacturing industry demonstrate moderate financial sustainability, but a subset of firms’ faces financial risk. The findings shows that Cost structure (both production and operation cost) is statistically significant and negatively affects financial sustainability. In addition, the results indicates that Corporate Governance does not appear to have a statistically significant relationship with financial sustainability. The results also suggests that corporate governance moderates the relationship between cost structure and the financial sustainability. Further, the finding indicates that the joint significance of the independent variables (Cost Structure and corporate governance) is not statistically significant. The high production and operational costs in Kenya pose a significant challenge to the growth and competitiveness of its manufacturing sector. However, by adopting a combination of strategic initiatives-ranging from technology adoption and local sourcing to infrastructure development and policy support-Kenyan manufacturers can reduce costs and enhance their position in both regional and global markets. Collaborative efforts between the government, private sector, and development partners will be critical in addressing systemic inefficiencies and unlocking the potential of the manufacturing sector. This will not only improve competitiveness but also drive industrialization, economic growth, and job creation in Kenya.
Keywords: Corporate Governance, Financial Sustainability, cost structure
The Impact of Corporate Governance on the Level of Compliance with Integrated Reporting (Published)
Integrated reporting represents the latest development in corporate disclosure, aiming to provide comprehensive information about an organization’s strategy, business model, performance, and governance while providing a clear view of its ability to create value in the long term. In recent years, academic interest in integrated reporting has increased significantly. However, the level of compliance of these reports with the requirements of the International Integrated Reporting Council (IIRC) remains an area that needs further research. This research seeks to fill the gap by analyzing the impact of three board characteristics (board size, board independence, and board activity) on how well integrated reporting corresponds to the integrated reporting framework. The results show that board independence and size have a positive and significant effect on how well reports conform to the integrated reporting framework. On the other hand, participation by board activity has no discernible impact on the degree of compliance to the integrated reporting system.
Keywords: Corporate Governance, Disclosure, integrated reporting
Corporate Governance and Earnings Management Among Listed Companies in Nigeria (Published)
The relevance of preparing quality financial statement reveals the need to rely on corporate governance mechanism, which can warn against earnings management. Global corporate scandals that took its toll with the collapse of once prestigious companies around the globe has increased the clamoring for a better governance mechanism worldwide and captivated the concern of academia to empirically establish any association between corporate governance and the earnings management among non-financial companies in Nigeria. It is against this backdrop this study specifically evaluated the influence of board size, board independence, board activity, board diversity and audit committee independence and expertise on real earnings management. The study sample 46 non-financial listed companies from 82 listed companies between the period of 2018 to 2021 and the result from panel corrected standard error regression analyses revealed a relationship between real earnings management and independent variables (board size, board independence, diversity, and audit committee expertise) with 0.006065, -0.27174, -0.03364 and 0.137426 as coefficient, and 0.027, 0.000, 0.000, and 0.000 as p-value respectively. Thus, in accordance with the findings, it can be concluded that collective corporate governance mechanism and real earnings management are related. Based on the above conclusion, it was recommended that firms should encourage larger board members with independence and sensitivity to constrain manipulation annual reports. Finally, companies should persist in expanding audit committee expertise and independence in order to promote effectiveness of the committee which, thus, increases the quality of financial reporting.
Keywords: Corporate Governance, Financial Statement, accounting earnings, earning management, non-financial companies
Analysis of The Role of Corporate Governance Mechanisms in Shaping the Financial Reporting Practices of MNEs in Nigeria (Published)
This study analysed the role of corporate governance on the quality of financial reporting practices of Multinational Enterprises (MNEs) in Nigeria. The study made use of managerial hegemony theory to establish a theoretical foundation in examining the effect of corporate governance mechanisms in the quality of the financial reporting practices of MNEs in Nigeria. Ex-post facto research design and panel regression were employed by the study. The study extracted data from the audited financial statement of 20 active MNEs in the consumer manufacturing sector listed on Nigeria Exchange Group (NGX). The population forms the sample size using census sampling. Findings revealed that the size of board, board independence, gender diversity and board shareholding did not significantly affect the quality of financial reporting practices of MNEs in Nigeria. Firm size and firm leverage significantly moderate the interaction between corporate governance and the quality of financial reporting practices of MNEs in Nigeria. The study concluded that this finding is a pointer to the fact that the quality of financial reporting of MNEs in Nigeria may be determined by factors other than corporate governance such as the adoption of International Financial Reporting Standard (IFRS), regulations, and Nigerian laws (CAMA 2020). Therefore, the study recommends that MNEs in the consumer sector in Nigeria should strengthen their corporate governance mechanism with the aim of improving the quality of financial reporting of their businesses in the short-run and the confidence of their customers and investors in the long-run.
Keywords: Board size, Corporate Governance, board gender diversity, board independent, board shareholding, financial reporting practices
Sustainability Reporting and Assets Quality of Listed Deposit Money Banks in Ghana, Kenya and Nigeria (Published)
Bank’s asset quality deteriorates when banks are exposed to high non-performing loans and associated credit risks. Sustainability reporting deepens the acceptability and understanding of huge opportunities and enhances the corporate competitive advantage of the banks in enhancing banks’ assets quality. This study investigated the effect of sustainability reporting on the assets quality of listed deposit money banks (DMBs) in Ghana, Kenya and Nigeria. The study explored secondary data, using a population of 95 listed DMBs, while a sample size of 31 DMBs was purposively selected for a period of 12 years. Data were extracted from the annual financial records of the banks and sustainability reporting checklist in line with the Global Reporting Initiative. The validity and reliability of the data were premised on the statutory audit of the financial statements. Descriptive and inferential (multiple regression) statistics were used to analyze the data at a 5% significant level. The study found that sustainability reporting significantly affected the assets quality of the listed deposit money banks in Ghana, Kenya and Nigeria (Adj R2 = 0.47, Wald-test (4, 367) = 342.18, p < 0.05). Based on the finding, the study recommended managers of the banks should exhibit high professional competence, and exercise managerial expertise and ethical practices in compliance with sustainability reporting best corporate best practices capable of enhancing the assets quality of the banks.
Keywords: Corporate Governance, Environmental, Social, assets quality, sustainability reporting
Corporate Governance and Market Value of Listed Manufacturing Firms in Nigeria (Published)
This paper examined the level of corporate governance compliance and its effect on the market value of listed manufacturing firms in Nigeria. The study adopted descriptive survey research design and used secondary data. The population of the study comprised of 78 listed manufacturing firms on the Nigeria Stock Exchange at the end of 2018. Using purposive sampling techniques, relevant data were obtained from 56 firms whose stocks were traded consistently on the stock market. Corporate governance practices and all other relevant economic data were obtained from the firm’s annual reports, the publication of the Nigeria Stock Exchange (NSE) as well as the website of the firms. The data were analyzed using tables, percentages and random effect estimation. The empirical and significant relationship between corporate governance index (t = 10.680 p < 0.001, t = 13.682 p < 0.001, and t = 11.206 p < 0.001) and firms’ value are found to be positive and highly significant in the three estimations. The study concluded that corporate governance is a value driver. The extended findings from the study also indicated that corporate governance mechanisms put in place by firms can ensure financial transparency and serve as catalyst towards ensuring proper utilization of the capital contributed to the firm by its inventors
Keywords: Corporate Governance, Tobin's Q
Retained Earnings, Corporate Governance and Market-To-Book Value of Listed Firms in Nigeria (Published)
The study analysed the importance of corporate governance practices in strengthening the relationship between retention policy and firm value from 2008 – 2018. The study adopted descriptive survey design and used secondary data. The population of the study comprised of 78 listed manufacturing firms on the Nigeria Stock Exchange as at the end of 2018. Purposive sampling technique was used to select firms with up-to-date published financial data and whose stocks were traded on the stock market totaling 56. The data were analysed using table, percentages and random effect estimation techniques. Findings from the analysis indicated that corporate governance index (t = 2.155, p<0.001), earnings per share (t=5.393, p<0.001) and retained earnings per share (t=9.761, p<0.001) were positively and significantly related to the market-to-book value of firms in Nigeria. The study therefore recommends that a higher level of retained profit of these firms together with efficient management practices through good governance will affect-their values positively.
Keywords: Corporate Governance, Earnings, market-to-book., retained earnings