CORPORATE GOVERNANCE AND THE PERFORMANCE OF QUOTED BANKS IN NIGERIA

Date

2017-10-13

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DEPARTMENT OF BUSINESS ADMINISTRATION FACULTY OF ADMINISTRATION NASARAWA STATE UNIVERSITY, KEFFI NIGERIA

Abstract

The financial sector is the heartbeat of every economy and that informs the need for countries to have sound resilient banking systems, which will strengthen and upgrade the institution to survive in the face of globalization. In Nigeria, the Central Bank (CBN) unveiled new banking guidelines designed to consolidate and restructure the industry through mergers and acquisition. This was to make Nigeria banks more competitive and be able to operate in the global market. Despite all its attempts, CBN disclosed that after the consolidation in 2006, 741 cases of attempted fraud and forgery involving N5.4 billion were reported. In the light of the above, this research examined the relationships that exist between governance and the financial performance of quoted banks in Nigeria from the 2006 consolidated period 2013 and also to find out if there is any significant relationship between the level of corporate governance disclosure index among Nigeria banks and their performance. The regression analysis and Pearson Correlation were used to find out whether there is a relationship between the corporate governance variables and firms performance in Nigeria. The study concludes that it is not really the quantum of governance disclosure, total assets or total equity that determines bank performance in Nigeria. The study therefore concludes that there is no uniformity in the disclosure of corporate governance practices by the banks. Likewise, the banks do not disclose in general about their performing loans and non performing loans, by providing a statement that expresses outstanding debts in terms of their period and due dates. The study suggests that steps should be taken for mandatory compliance with the code of corporate governance.

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Citation

BEING A PROJECT SUBMITTED IN FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER IN BUSINESS ADMINISTRATION (MBA) IN THE DEPARTMENT OF BUSINESS ADMINISTRATION, FACULTY OF ADMINISTRATION, NASARAWA STATE UNIVERSITY, KEFFI NIGERIA.