CORPORATE GOVERNANCE PRACTICES AND BANK PERFORMANCE IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
In the immediate past two decades the financial services industry has experienced fluctuating fortunes leading to high profile cases of corporate failure and consequent near loss of public confidence and hence, the banking reform kick starts in 2004. The industry’s problems in Nigeria are consequences (directly or indirectly) of bad corporate governance. The lack of effective corporate governance in Nigeria has worked to the decrement of shareholders and created a class of stakeholder who has lost interest in the banking system. The study therefore appraised Nigerian banks’ compliance to the CBN code of Corporate Governance as well as its effect on bank performance. Analysis of variance (ANOVA) was used to measure Nigerian bank’s compliance to the CBN code of corporate governance, while the panel data ordinary least square regression to measure the compliance effect on bank’s profitability. Among other codes of corporate governance for board size, audit committee, board diversity, and power separation. Nigerian commercial banks’ compliance to CBN best practice for board size was statistically insignificant. Therefore, commercial banks in Nigeria were up till the date of this study non-compliant with the CBN best practice for board size. The same was discovered for board diversity, audit committee, and power separation as the f-statistics evidenced in analysis of Variance showed a significant variance between the Nigerian commercial banks’ observed practices and the best practice code as dictated by the Central Bank of Nigeria (CBN). Nonetheless, Nigerian commercial banks significantly complied with the CBN best practice code for commercial banks’ board composition. This was evidenced in the analysis of variance as the f- calculated was less than the f- critical, signifying very little variance between commercial banks’ observed practices and the CBN best practice code for corporate board composition. It was recommended that Central Bank of Nigeria should strictly monitor Nigerian banks’ compliance to the code of corporate governance, especially board size, audit committee, board diversity, power separation, as a percentage increase in general compliance to the best practice. In conclusion, Compliance to Central Bank of Nigeria code of corporate governance significantly impacted on banks’ profitability in Nigeria. CBN code of corporate governance raises profitability of Nigerian banks by 3.53 percent. The direct relationship between general compliance to CBN code of corporate governance and profit of commercial banks will boost the profitability of the commercial banks.
Related Project Materials
HERMENEUTICAL APPRAISAL OF LUKE 16-19-31 IN THE CONTEXT OF THE RICH-POOR DICHOTOMY IN IGBOLAND -NIGERIA
Background to the Study
The text of Luke 16:19-31, the parable of the rich man and Lazarus (Λάδα&rho...
AUTOMATED FISH FEEDER Using Internet of Things (IoT)
ABSTRACT
Automated Fish Feeder is a system, which focuses on aiding small scale fish farmers to feed their farms efficiently. By using Ar...
THE EFFECTS OF TV ADVERTS ON CHILDREN (A CASE STUDY OF ENUGU URBAN)
BACKGROUND OF STUDY
Television advertisement represents one of the several stimuli to which children ar...
FLOOD RISK ASSESSMENT OF OFU RIVER CATCHMENT IN NIGERIA
ABSTRACT
The aim of this study was to carry out a flood risk assessment for Ofu River Catchment in Nigeria. Shuttle Radar Topographic Mis...
A SURVEY OF THE PROBLEMS OF COMPUTERIZATION OF OFFICE FUNCTIONS
Abstract
The contribution of the Business Establishment to the economic development of any nation cannot be over emphasi...
THE EFFECT OF SALES PROMOTION AS A TOOL FOR ACHIEVING CUSTOMERS BRAND LOYALTY IN THE TABLE WATER INDUSTRY
ABSTRACT
This topic the effect of sales promotion as a tool for achieving customers brand loyalty in th...
LIBRARY SERVICES AND LEARNING RESOURCES AS DETERMINANT OF SECONDARY SCHOOL STUDENTS’ ACADEMIC ACHIEVEMENT IN MATHEMATICS
Background to the Study
Library did not come into exis...
CHALLENGES OF MEETING GLOBAL STANDARD IN EDUCATION, EDUCATIONAL IMPLICATIONS FOR NIGERIAN UNIVERSITIES
Abstract
This study examines the challenges of meeting global standard in education in Nigeria. Education is the bedroc...
EVALUATION OF THE IMPACT OF ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY ON POVERTY ALLEVIATION IN TARABA STATE
ABSTRACT
The study evaluates the impact of Taraba State Economic Empowerment and Devel...
IMPACT OF TERRORISM ON NIGERIA’S ECONOMY
Abstract
Terrorism has been an insidious act common and conducted daily over decades and has been responsible for the ph...
