Corporate Governance and Debt Financing of Listed Manufacturing Firms in Nigeria (Published)
The study assessed the relationship between corporate governance and capital structure of listed manufacturing firms in Nigeria. The study employed secondary data covering a period of 10 years (2012 – 2021) with sample of 28 listed manufacturing firms. The study obtained annual reports of listed firms from their respective websites and Nigerian Stock Exchange (NSE) Factbook. The data were analysed using pool ordinary least squared and fixed effect model estimation. The findings revealed a significant relationship between the corporate governance and debt financing of the listed manufacturing firms in Nigeria. Specifically, results show that corporate governance variables such as the board size ((t = 2.120 p < 0.05), the board composition (t= 9.288, p < 0.05) and CEO duality (t =2.306, p< 0.005) had positive and significant effect on use of debt funding of listed manufacturing firms in Nigeria. The study concluded that the practice of corporate governance contributes and play significant role in finance decision and enhanced financial performance in Nigeria. Therefore, policy maker should ensure a combination of some mandatory minimum rules and flexibility above the minimum level that will ensure effective financing decision by manufacturing firms in Nigeria.
Keywords: Corporate Governance, Debt, Financing, Manufacturing, Nigeria
Corporate Governance and Organizational Performance: A Study of Selected Banks in Nigeria (Published)
An indebt study of the performance of Nigerian Banking sector is deplete with litany of woes and failures. This necessitated the need to examine the factors responsible for this sad scenario against the background of the role of corporate governance on organizational performance. The study adopted a combination of both descriptive design and ex-post facto research methodology; Secondary data were sought from published annual reports of selected Banks for the period under review (2014-2020), and was analyzed using descriptive statistics and ratio analysis. Hypotheses were tested by multiple regression and Pearson product moment correlation methods. The finding of the study revealed that there is a positive relationship between Audit Committee Size, Board Composition with performance of selected Banks, while Board Size and Board Meetings showed negative significant relationship with performance of selected Banks respectively. The study concluded with recommendations that Corporate Governance Mechanism and Code of Best practices contributed a good deal to the performance of Banks – that the managers of Selected Banks should adopt Corporate Governance principle and best practices as integral parts of managing banks for both effective and efficient service delivering, thus striking a balance between organization’s objective and the stakeholder’s interest.
Citation: Isidore Godwin Usendok (2022) Corporate Governance and Organizational Performance: A Study of Selected Banks in Nigeria, International Journal of Business and Management Review, Vol.10, No.4, pp.59-74
Keywords: Corporate Governance, Financial Performance, Stakeholders, corporate structure
Corporate Governance and Profitability of Quoted Oil and Gas Companies in Nigeria (Published)
This study investigated the influence of corporate governance on profitability of quoted oil and gas companies in Nigeria. The ex post facto research design was adopted for the study. The population of the study was made up of the twelve (12) oil and gas companies listed on the Nigerian stock exchange between 2010 and 2018. Ten (10) listed oil and gas companies in Nigeria constituted the sample size for this study. Data required for the study were extracted from the audited financial statements of the quoted oil and gas companies that constituted the sample of this study and analysis of data was carried out using descriptive statistics. Multiple regression and correlation statistics were used in testing the hypothesis postulated. The investigation revealed that a significant positive linear relationship exists between corporate governance and profitability of quoted oil and gas companies in Nigeria and that board independence, board size and board meetings accounts for 3.2 percent, 21.9 percent and 2.8 percent respectively of the profitability of quoted oil and gas companies in Nigeria. The results of the study further revealed that audit committee independence, audit committee meetings and audit committee competence accounts for 1.6 percent, 6.8 percent and 14.3 percent respectively of the profitability of quoted oil and gas companies while external auditor independence, shareholders’ involvement and ownership concentration accounts for 1.2 percent, 23.6 percent and 0.2 percent respectively of the profitability of quoted oil and gas companies in Nigeria. Based on the findings of the study, it is concluded that corporate governance has a moderate influence (52.3 percent) on profitability of quoted oil and gas companies in Nigeria. One of the recommendations made was that quoted oil and gas companies in Nigeria should continually appraise their corporate governance system with a view to determine whether the system is functioning as expected so that corrective actions can be taken to address any deficiency in the system and such appraisal should be done annually.
Keywords: Board Of Directors, Corporate Governance, Corporate Governance Mechanisms, Net Profit Margin, Profitability
Corporate Governance and Financial Stability of Nigeria Quoted Deposit Money Banks (Published)
The development in corporate governance and the practice play important role in developing and enhancing the global economy, business firms and improving financial stability of deposit money banks. The rising of non-performing loans, decline in asset quality, credit concentration and high foreign exchange exposure and volatility have led to financial instability and financial distress in deposit money banks in Nigeria. The study examined the effect of corporate governance on the financial stability of deposit money banks in Nigeria. Ex-post facto research design was adopted for the study. The population of the study comprised the 21 listed deposit banks on the Nigerian stock exchange as at September 2016. The study made use of a total of 10 banks as sample size which was categorized under the listed deposit money banks in Nigeria. These banks were selected using stratified sampling technique. Data were collected from the annual reports for the period of ten years (2007-2016). Descriptive Statistics test were carried out, hausman test and cross-section random effect test were analyzed. The analysis revealed that all corporate governance variables have a positive and negative effect on capital adequacy at Adj.R2 = 0.052 and F test score of 2.832, capital structure at Adj.R2 = 0.088 and F test score of 4.187, and liquidity at Adj.R2 = 0.004 and F test score of 1.149. Corporate governance has a positive and negative effect on financial stability with P-value of F statistics at 0.000 and Adjusted R2 = 12.9%. The study concluded that corporate governance has a significant effect on financial stability. This means that as the content of corporate governance improves financial stability increases. The study recommended that to increase financial stability, management should focus on ensuring that there is effective corporate governance in the organization.
Keywords: Corporate Governance, Volatility, capital adequacy, capital structure and liquidity, financial stability
Corporate Governance and Reported Earning Quality in Deposit Money Banks in Nigeria (Published)
This study examined the effect of Corporate Governance on Reported Earnings Quality in Nigerian deposit money banks. Cross sectional data were obtained from Ten (10) listed deposit money banks in Nigerian Stock Exchange for over a period of ten years (2008-2017). The data were analyzed using both descriptive and inferential statistics. Earnings predictability was adopted as a proxy for reported earnings quality, while board size, board independence, foreign directorship and firm size were used as proxies for corporate governance. The study found board size having a positive and insignificant relationship with earnings quality; a negative and insignificant relationship between board independence and earnings quality; a positive and significant relationship between foreign directors on board and earnings quality; and also a negative and insignificant relationship between firm size and earnings quality. It was therefore recommended that deposit money banks should increase both their board size and number of foreign directors on board as these will enhance their reported earnings quality.
Keywords: Board independence, Board size, Corporate Governance, earning quality, foreign directors
Theoretical Analysis of Globalisation and Corporate Performance in Chemical Industry: The Mediating Role of Corporate Governance (Published)
Good corporate governance practice is a major yardstick for standardizing business practices in the midst of a high rate of diversities and inconsistencies in global business practices. Industries are operating in a global business environment that is deeply embedded in interdependency, and is being subjected to good corporate governance requirements. In this sense, the paper examined the definitions of corporate governance, its principles and control mechanisms. It also focused on the phenomenon of globalization and links it with good corporate governance principles that can promote values in the area of code of conduct in supporting excellence and the creation of an ethical culture in the industry. The study suggested a framework for chemical industries for enhanced performance and their continuous growth and development of industries. It is concluded that globalization is a phenomenon that has assumed a new proportion in present day global political economy for which companies must equip and package themselves effectively and thoroughly to face their challenges in the 21st century. In recommendation, managers of industries must strictly follow principles/regulations of corporate governance in a global economy.
Keywords: Business Environment, Companies, Corporate Governance, Globalisation
Corporate Governance and Return on Assets of Quoted Banks in Nigeria (Published)
This study examined the influence of corporate governance on return on assets of quoted banks in Nigeria. The study used secondary data from 2013 to 2017.Data sourced from selected Annual Report and Accounts of three Quoted banks by the Nigerian Stock Exchange. The study utilised both Descriptive Statistics and Ordinary Least Square-Multiple Regression method with the aid of using E-view 9 to analyse the data. The results shown that, the corporate governance has significant influence on return on assets as (F-statistics = 23.46, P <0.05). The results further indicate that, the proportion of shareholders more than 10,001 share, board of composition size and bank size exerts a positive and considerable relevance to return on assets of quoted banks in Nigeria and bank size has significant influenced on return on assets with (β=2.09, t=3.94, p<0.05). Findings suggest that board of directors size of quoted banks in Nigeria should not be too large and must be meeting regularly to effectively and efficiently carry out their oversight functions and responsibilities
Keywords: Banks’, Corporate Governance, Multiple Regressions, Nigeria, Return on Assets
Corporate Governance: The Stakeholders Perspective (Published)
The wave of globalization and industrialization trends experienced all over the world has resulted in the emergence of large corporations as well as conglomerates. These large corporations contribute immensely to the social, economic development of their host nations. This paper explores the concept of corporate governance as well as the need for corporate governance. Also examined are the basic principles of corporate governance. The focus of this paper is on the external group of individuals (stakeholders) to the organization. This paper defines them as well as their roles in ensuring corporate governance and wealth creation for the business organization. It concludes by making recommendations on how businesses can strike a balance between achieving organizational goals and stakeholder needs.
Keywords: Corporate Governance, Management, Stakeholders, corporation
DO BOARD COMMITTEES AFFECT CORPORATE FINANCIAL PERFORMANCE? EVIDENCE FROM LISTED COMPANIES IN GHANA (Published)
This research has examined the effect of board committees on corporate financial performance among companies listed on the Ghana Stock Exchange (GSE). The quantitative research approach was adopted to study the prognostic effect of board committee on corporate financial performance for companies consistently listed on the GSE from 2006-2010. Data was sourced from annual reports of listed companies and a static panel regression model was employed to analyze the presence of various committees on corporate financial performance. The results indicated that board committees had no statistical significant effect on the corporate financial performance of listed firms. Specifically, nomination committee regressed negatively on corporate financial performance but was statistically insignificant at the 5% level, with audit committee having no effect whiles remuneration committee predicted positively but also not statistically significant on corporate financial performance. The outcome suggests that the internal workings of corporate boards were weak implying that the effective supervision expected of these committees in terms of executive recruitment, succession planning, internal control, effective financial reporting, and the fixation of executive remuneration are lacking. The author recommends that board committees be strengthen with capable outside directors, skillful in the various technical areas to assist committees deliver on their responsibilities by instituting transparent selection processes. Listed firms must also desist from the selection of outside directors because they will sustain the dominance of the board to a more strategic selection approach where outside directors exercise unflinching oversight responsibility to enable firms reach their long-term goals.
Keywords: Corporate Governance, board committees, corporate financial performance
Corporate Governance Structure and Timeliness of Financial Reports of Quoted Firms in Nigeria (Review Completed - Accepted)
This paper examines the impact of corporate governance on the timeliness of financial statements of quoted firms in Nigeria. To achieve this objective, data was collected from books, financial statements and journals. The data collected were analysed using relevant diagnostics tests, granger causality and multiple regression models. The result revealed a significant relationship between board independence and timeliness of financial reports; board size and timeliness of financial reports; board expertise and knowledge and timeliness of financial reports; board experience and timeliness of financial reports; also no significant relationship between CEO duality and timeliness of financial reports and board meetings and timeliness of financial reports. On the basis of the empirical result, the paper concludes that the application of appropriate corporate governance factors will go a long way to improve the timeliness of financial reports and quality financial statements Therefore, on the basis of the findings and conclusions of the study, we recommends that quoted companies should ensure that corporate governance codes are used in the day-to-day operations of corporation to achieve short, medium and long-term goals; government should ensure that regulatory agencies monitor the activities of corporations to ensure compliance with best practice. Also above all integrity, objectivity and fairness must be applied in the conduct of corporate business for financial statement needs be achieved for users
Keywords: Boards, Corporate Governance, Financial Report, Nigeria, Timeliness