An Assessment of the Relationship Between Board Effectiveness and Corporate Performance in Jigawa State
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Background of the Study
The board of directors is a critical component of corporate governance, responsible for providing strategic direction and oversight. Effective boards are associated with better corporate performance, as they ensure that organizations meet their objectives while adhering to ethical and regulatory standards (Adeyemi & Musa, 2023).
In Jigawa State, the corporate sector is expanding, necessitating strong governance mechanisms to sustain growth. However, the relationship between board effectiveness and corporate performance remains underexplored in the region. This study examines this relationship, focusing on how factors such as board composition, diversity, and expertise influence organizational outcomes.
Statement of the Problem
While corporate performance is influenced by various factors, the role of board effectiveness is often overlooked in Jigawa State. Issues such as lack of diversity, limited expertise, and poor accountability hinder board effectiveness, ultimately affecting corporate performance (Afolabi & Eze, 2024).
This study addresses these challenges by assessing the relationship between board effectiveness and corporate performance, identifying areas for improvement, and recommending best practices.
Objectives of the Study
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To evaluate the level of board effectiveness in organizations in Jigawa State.
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To examine the relationship between board effectiveness and corporate performance.
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To recommend strategies for enhancing board effectiveness and corporate performance.
Research Questions
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What is the level of board effectiveness in organizations in Jigawa State?
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What is the relationship between board effectiveness and corporate performance?
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What strategies can enhance board effectiveness and corporate performance?
Research Hypotheses
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Board effectiveness does not significantly influence corporate performance in Jigawa State.
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There is no significant relationship between board diversity and organizational outcomes.
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Current governance practices are sufficient to ensure board effectiveness.
Scope and Limitations of the Study
The study focuses on organizations in Jigawa State, examining the link between board effectiveness and corporate performance. Limitations include limited access to board performance data and potential biases in stakeholder responses.
Definitions of Terms
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Board Effectiveness: The ability of a board of directors to fulfill its responsibilities and contribute to organizational success.
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Corporate Performance: The financial and non-financial outcomes of an organization's operations.
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Board Diversity: The presence of varied perspectives, experiences, and demographics on a board.
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