THE IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY


2,177 marked this research material reliable.
Call or whatsapp: +2347063298784 or email: info@allprojectmaterials.com
Department: banking and finance project topics | Type: Project Topics | Project Topics and Materials | List of Project Topics | Research Project Materials | Journals | Thesis | Articles | Online Project Materials | Business Plan | Final year project topic | Format: Ms Word and PDF | Attribute: Documentation Only | Pages: 76 Pages | Chapters: Complete Research work from Chapter 1 to 5; All chapters | Inclusive: Abstract, Preliminary Pages, Table of Contents and Appendices | Cost: ₦ 5,000.00


THE IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY

PROJECT TOPICS AND MATERIALS ON THE IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY


CHAPTER ONE

                                                            INTRODUCTION

 

1.1   BACKGROUND TO THE STUDY

Corporate Governance is the system by which corporations are directed and controlled (Rezaee, 2009). The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision making assistance on corporate affairs (Magdi and Nadereh, 2002). By doing this, it also provides the structure through which the company objectives are set, the means of obtaining those objectives and examining the value and the performance of the firms. Effective corporate governance is considered as ensuring corporate accountability, enhancing the reliability and quality of financial information, and therefore enhancing the integrity and efficiency of capital markets, which in turn will improve investors’ confidence (Rezaee, 2009).

Corporate governance involves a system by which governing institutions and all other organizations relate to their communities and stakeholders to improve their quality of life. (Ato, 2002). It is therefore important that good corporate governance ensures transparency, accountability and fairness in reporting. In this regard, corporate governance is not only concerned with corporate efficiency, but also relates to a much wider range of company strategies and life cycle development (Mayer, 2007). It is also concerned with the ways parties (stake holders) interested in the wellbeing of firms ensure that managers and other insiders adopt mechanisms to safeguard the interest of the shareholders. (Ahmadu and Tukur, 2005). Corporate governance is based on the level of corporate responsibility a company exhibits with regard to accountability, transparency and ethical values. Corporate governance has also been defined by Keasey et al (1997) to include, “the structures, processes, cultures and systems that engender the successful operation of organizations”. The definition could therefore be centered on how the organization relates with other stake holders within an environment. Therefore, corporate governance describes how companies ought to be run, directed and controlled (Cadbury Committee, 1992). It is about supervising and holding to account those who direct and control the management.

Corporate governance is an important effort to ensure accountability and responsibility and a set of principles, which should be incorporated into every part of the organization. Though it is viewed as a recent issue, there is, in fact, nothing new about the concept. Corporate governance has been in existence as long as the corporation itself – as long as there has been large–scale trade, reflecting the need for responsibility in the handling of money and the conduct of commercial activities (Metrick and Ishii, 2002). Corporate governance has succeeded in attracting a great deal of interest as it focuses not only on the long-term relationship, which has to deal with checks and balances, incentives for managers and communications between management and investors but also on transactional relationship, which involves dealing with disclosure and authority (Tandelilin et al. , 2007).

The challenge of corporate governance could help to align the interests of individuals, corporations and society through a fundamental ethical basis. This it will fulfill the long-term strategic goal of the owners, which, after survival may consist of building shareholder value, establishing a dominant market share or maintaining a technical lead in a chosen sphere (Yetman,2004). It will certainly not be the same for all organizations, but will take into account the expectations of all the key stakeholders, in particular: considering and caring for the interests of employees, customers and suppliers, stockholders and debt holders, state and local community, both in terms of the physical effects of the company’s operations and the economic and cultural interaction with the population. The outcome of a good corporate governance practice is an accountable board of directors who ensures that the investors’ interests are not jeopardized (Hashanah and Mazlina, 2005).

Desai and Yetman (2004), identified two areas of agency problems that make human ability to make allocative decision imperfect; the cognitive and behavioral limitations. The cognitive limitation is hidden information, also known as bounded rationality. This prevents investors from knowing a priori whether the managers, whom they have employed as their agents, allocate resources in the most efficient manner. The behavioral limitation, also known as opportunism, is hidden action that reflects the productivity, inherent in an individualistic society of managers as agents to use their positions for resources allocation to pursue their own selfish interest and not necessarily the interest of the firm’s principals. This makes it very crucial and important to study the existence of the influence of corporate governance on the performance of firms.

 

 1.2     STATEMENT OF PROBLEM

Banks and other financial intermediaries are at the heart of the world’s recent financial crisis. The deterioration of their asset portfolios, largely due to distorted credit management, was one of the main structural sources of the crisis (Sanusi, 2010). In Nigeria, before the consolidation exercise, the banking industry had about 89 active players whose overall performance led to sagging of customers’ confidence. There was lingering distress in the industry, the supervisory structures were inadequate and there were cases of official recklessness amongst the managers and directors, while the industry was notorious for ethical abuses (Akpan, 2007).   Poor corporate governance was identified as one of the major factors in virtually, all known instances of bank distress in the country. Weak corporate governance was seen manifesting in form of weak internal control systems, excessive risk taking, override of internal control measures, absence of or non-adherence to limits of authority, disregard for cannons of prudent lending, absence of risk management processes, insider abuses and fraudulent practices remained a worrisome feature of the banking system (Soludo, 2004).  The problem of corporate governance still remains un-resolved among consolidated Nigerian banks, thereby increasing the level of fraud (Akpan, 2007). The current banking crises in Nigeria, has been linked with governance malpractice within the consolidated banks which has therefore become a way of life in large parts of the sector. He further opined that corporate governance in many banks failed because boards ignored these practices for reasons including being misled by executive management, participating themselves in obtaining un-secured loans at the expense of depositors and not having the qualifications to enforce good governance on bank management (Sanusi ,2010).

 

1.3    OBJECTIVES OF THE STUDY

The main  objective of this study is to ascertain the impact of corporate governance on performance in Nigerian commercial banks. To achieve this, the research is focused on the following specific objectives:

  1. Examine the conceptual framework of corporate governance in commercial banks in Nigeria.

ii.   Determine the extent of corporate governance practices in operation in the banking sector

  1. Ascertain the impact of Board Size on corporate performance.

iv.   Determine how the level of independence of directors influences the returns of banks.

v.    Ascertain the factors that affect the levels of governance adopted.

 

1.4     RESEARCH QUESTIONS

The study will attempt to answer the following research questions:

  1. i.   To what extent do commercial banks in Nigeria practice and adhere to corporate governance principles?

ii. Does the size of a board have an impact on the corporate performance of banks in Nigeria?

iii. What influence does the level of independence of boards have on bank’s performance?

  1. iv.   What are the reasons that make firms adopt different levels of governance under the same level of investor protection?

 

1.5    RESEARCH HYPOTHESES

Hypothesis One

H0: There is no significant relationship between the size of a board and firm performance

        in the banking sector in Nigeria

H1: There is a significant relationship between the size of a board and firm performance

        in the banking sector in Nigeria

Hypothesis Two

H0: Level of board independence has no impact on firm performance in the banking sector

H1:. Level of board independence impacts on firm performance in the banking sector

 

 

 

1.6    SIGNIFICANCE OF THE STUDY

The purpose of this study would be to critically examine, and understand while analyzing the adherence to corporate governance in the Nigerian Commercial banking sector. The outcome of this research is anticipated to contribute to existing body of knowledge.In addition; the study would highlight the regulatory and institutional factors which may affect the adoption, sustainable observation and practices of good corporate governance by banks in Nigeria.

Since the corporate performance of banks and other financial intermediaries is crucial for efficient resource allocation, at the micro and macro levels, this study would show the importance for banks themselves to put in place sound corporate governance. In fact, no one single factor contributes more to institutional problems, capable of precipitating crisis, than the lack of effective corporate governance (Lawal, 2009).

 

1.7   SCOPE OF THE STUDY

This study investigated corporate governance and its impact on performance commercial banks in Nigeria. The choice of this sector is based on the fact that the banking sector’s stability has a large positive externality and banks are the key institutions maintaining the payment system of an economy that is essential for the stability of the financial sector (Achua, K,2007). Financial sector stability, in turn has a profound externality on the economy as a whole. To this end, the study basically covered five of the commercial banks operating in Nigeria till date that met the N25 billion capitalization dead-line of 2005. The study will cover these banks’ activities during the post consolidation period i.e. 2006- 2012.

 

 

1.8   DEFINITION OF KEY TERMS

CORPORATE GOVERNANCE: is the totality of practices and principles by which a company’s board of directors provide a framework for achieving a company’s objectives. It encompasses every aspect of Management from the conceptualization of plans to the evaluation of performance and disclosure of such performance.

PLANNING: is developing a strategy to accomplish specific objectives set to achieve organizational performance.

ORGANIZATION PERFORMANCE: is the ability of an organization to fulfill its mission through sound management, strong governance and a persistent rededication to achieving results.

PRODUCTIVITY: is the effectiveness of all efforts geared towards set objectives, measured as a relationship between the amount of output produced and the amount of input used to produce that output.

PERFORMANCE: is the result of activities of an organization or investment over a given period of time.

SHAREHOLDER:  is an individual, group, or organization that owns one or more units of shares in a company and who partakes in the financial prosperity or otherwise of the company.

STAKEHOLDERS: A person, group or organization that has an interest or concern in an organization.

DOWNLOAD COMPLETE WORK FOR THE IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY


Additional Information

  • The Project Material is available for download.
  • The Research material is delivered within 15-30 Minutes.
  • The Material is complete from Preliminary Pages to References.
  • Well Researched and Approved for supervision.
  • Click the download button below to get the complete project material.

Frequently Asked Questions

In-order to give you the best service available online, we have compiled frequently asked questions (FAQ) from our clients so as to answer them and make your visit much more interesting.

We are proudly Nigerians, and we are well aware of fraudulent activities that has been ongoing in the internet. To make it well known to our customers, we are geniune and duely registered with the Corporate Affairs Commission of the republic of Nigeria. Remember, Fraudulent sites can NEVER post bank accounts or contact address which contains personal information. Free chapter One is always given on the site to prove to you that we have the material. If you are unable to view the free chapter 1 send an email to info@researchcub.info with the subject head "FREE CHAPTER 1' plus the topic. You will get a free chapter 1 within an hour. You can also check out what our happy clients have to say.


Students are always advised to use our materials as guide. However, if you have a different case study, you may need to consult one of our professional writers to help you with that. Depending on similarity of the organization/industry you may modify if you wish.


We have professional writers in various disciplines. If you have a fresh topic, just click Hire a Writer or click here to fill the form and one of our writers will contact you shortly.


Yes it is a complete research project. We ensure that our client receives complete project materials which includes chapters 1-5, full references, questionnaires/secondary data, etc.


Depending on how fast your request is acknowledged by us, you will get the complete project material withing 15-30 minutes. However, on a very good day you can still get it within 5 minutes!

What Clients Say

Our Researchers are happy, see what they are saying. Share your own experience with the world.
Be polite and honest, as we seek to expand our business and reach more people. Thank you.

A Research proposal for the impact of corporate governance on performance in the nigerian banking industry:
Reviews: A Review on the impact of corporate governance on performance in the nigerian banking industry, impact, corporate, governance project topics, researchcub.info, project topic, list of project topics, research project topics, journals, books, Academic writer.
This empirical study, seeks to determine the impact of corporate governance mechanisms on the performance of banks in Nigeria. An intensive review of literature was conducted to identify the various aspects of corporate governance and the roles they play in determining corporate performance. In this study, board size and board independence represented corporate governance while return on equity and return on assets proxied firm performance. The Ordinary Least Squares (OLS) technique was applied on data gathered from 5 Commercial Banks firms over the period 2008 to 2012. The findings of this study indicate that elements of corporate governance such as board size and board independence have negative effects on the performance of firms, as measured by the return on assets and return on equity. .. banking and finance project topics

THE IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY

Project Information

Share Links

Download Post (MsWord)
Download Post (PDF)

Search for Project Topics

Project topics in Departments

How much does it cost to hire a writer in Nigeria?

Looking for Professional Approach and Quality Research Services ?

Estimating the cost of research writing in Nigeria: Freelance writers in Nigeria may charge anywhere from ₦5,000 to ₦50,000 or more per project, depending on the factors mentioned earlier. SEO-focused content may be on the higher end of this range due to the additional skills and research involved. For a more accurate estimate, it's recommended to reach out with us, discuss your specific requirements, and request a quote based on the scope of your project. Prices can vary, so getting personalized quotes will help you determine the cost more precisely.

Undergraduate Project Topics, economics project topics, marketing project topics, business administration project topics, engineering project topics, computer science project topics, banking & finance project topics, education project topics, law project topics, sciences project topics, public administration project topics, political science project topics, mathematics project topics, medical science project topics, mass communication project topics, research projects, geology project topics, marketing project topics, agriculture project topics, Browse Thousands of Final Year Project Topics, hire a writer, Research Works and Materials, Project topics and materials in Nigeria, Undergraduate Project Topics, Research Works and Materials, research topics, research project materials, complete project materials, computer science project material, free project topics, complete projects, accounting topics, small business topics, entrepreneurship topics, project materials, Nigerian undergraduate projects, business administration projects, computer science topics and projects, MBA Nigerian project topics, human resources, small businesses, entrepreneurship projects, economics projects, impacts projects, effect projects, university projects, polytechnic projects, investigate projects, political science projects, mass communication projects, project topics, human resource projects, education projects, French topics, project analysis, French projects, project tips, project abstract, project proposals, project bibliography, project reference, project seminar, forex, TSA, treasury single account, currency, naira, devaluation, undergraduate projects, final project research, marketing project topics, statistics project topics, mathematics project topics, statistics, mathematics, research projects, project thesis, labour force theses, NCE, OND, HND, BTECH, BSC, MBA, MSC, English projects, linguistic project topics, Free Project topics and materials in Nigeria, research topics, reseach project materials, computer science project material, free, complete, accounting topics, small business topics, materials, nigeria projects, business administration projects, computer science topics and projects, MBA nigeria project topics, human resources, small business, entrepreneurship projects, economics projects, impact projects, effects projects, training, budgets, ghana, university, polytechnic, browse Free project materials and topics in Nigeria, accounting and finance project materials, business administration project materials and topics, human resources, entrepreneurship, computer science and engineering project materials and topics, Accounting project topics, Accounting project topics and materials, Agricultural Economics Project Topics and Materials, Agricultural Science Projects topics and materials, All Project topics and materials, Architecture Project topics and materials, Aviation project topics and materials, Banking & Finance Projects topics and materials, Biology project and materials, Building project topics and materials, Business Administration & Management Projects topics and materials, Chemical Engineering Project Topics and materials, Civil Engineering Projects topics and materials, Communication & mass communication art project topics and materials, Computer Engineering Project Topics and materials, Computer Science Projects topics and materials, Criminology project topics and materials, Economics Research Projects topics and materials, Education Project Topics and Materials, Electrical Engineering Projects and materials, English Education & English Language Project topics and materials, Food Science project topics and materials, Geology Project Topics and materials, Guidance Counseling Project Topics and materials, History project topics and materials, Home Economics Project Topics and Materials, Human Resource Projects topics and Materials, Industrial Chemistry Projects topics and materials, Insurance Projects topics and materials, Law project topics and materials, Library and information science project topics and materials, Marine and Transport management project topics and materials, Marketing Projects topics and materials, Mathematics project topics and materials, Medical Sciences Project Topics and materials, Microbiology project topics and materials, Nursing and Midwifery project topics, Nursing and Midwifery project topics and materials, Optometry or nursing project topics and materials, Petroleum Engineering project topics and materials, Pharmacy project topics and materials, Philosophy project topics and materials, Photography project topics and materials, Physical and Health Education project topics and materials, Physiology project topics and materials, Political science project topics and materials, Project topics and materials, Psychology project topics and materials, Random project, Religious and Cultural Studies Project Topics and Materials, Sociology and Anthropology Project topics and materials, Sociology Project Topics and materials, Tourism project topics and materials, Vocational education project topics and materials. Project Topics: List of Project Topics | the impact of corporate governance on performance in the nigerian banking industry | impact | corporate | governance Project Topics | researchcub.info