CORPORATE GOVERNANCE AND BANK’S PERFORMANCE IN NIGERIA (POST – BANK’S CONSOLIDATION)
Journal Title: European Journal of Business and Social Sciences - Year 2013, Vol 2, Issue 8
Abstract
The financial institution in Nigeria like other African country has been struggling with the epidemic of inadequate corporate governance over the years what seem to be an exigency of integration between political and economic pursue after forty seven years of political independence. This has to do with what revolves round all the sectors of the economy – corporate governance. It deals with the complex set of the relationships between the corporation and its board of Directors, Management, Shareholders and other Stakeholders. In the recent years, the regulators and legislators have intensified their focus on how business is been managed and run. This has led to creation of a template for new corporate governance and ethical standard which is beneficial for both the stakeholders and controllers. This study carried out some estimated models. Binary probit was adopted to test the covariance matrix computed on structured questionnaire to bank’s clients and it was discovered that the variables such as independence, reliance, and fairness helps in the effective performance of banks but the major significant ones in this consolidation period are accountability and transparency of bank’s staff. Also, least square regression analysis was adopted to convey the relationship between bank deposits with bank credit. The estimation of the developed model was found that banks total credit was positively related but not significantly determinant factors of bank’s performance, and bank deposit was found to be positively related to bank performance but was insignificant in Nigerian economy. Base on the result therefore and view from bank’s clients, it was cleared that corporate governance is needed for effective bank performance especially during the period of post consolidation in Nigeria. Hence, this study therefore summaries the highlights: discuss the impact of corporate governance in all the 24 Nigerian main stream banks. It is worthy of note that though corporate governance has been the heart beat of stakeholders and regulatory body yet the objective has not been fully achieved. The study recommend that, for better bank performance in Nigeria, banks should embrace the fiduciary element in financial services which include transparency, accountability, fairness, high ethical standard and they are to ensure that their top management officials is independent. These will promote corporate governance and leads to complete reliance of bank’s clients on them.
Authors and Affiliations
Akingunola R. O| Department of Accounting, Banking and Finance Olabisi Onabanjo University,Ago Iwoye,Ogun State, Adekunle Olusegun. A (Corresponding Author)| Department of Business Administration Gateway Polytechnic Saapade, Ogun State, Nigeria E-mail: adekunleolusegun@yahoo.com + 23408034254976, Adedipe oluseyi . A| Department of Accounting and Finance Ajayi Crowther University, Oyo, Oyo State Nigeria
Keywords
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