Relationship between Principles of Corporate Governance and the Nigerian Banking Industry

Okoro, Chineme Blessing and Adekitan, Rasheed Akanfe (2016) Relationship between Principles of Corporate Governance and the Nigerian Banking Industry. International Journal of Ergonomics and Human Factors, 12 (2). pp. 76-83. ISSN 2384‐5349

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Many of the chief executives were running the banks as if they were personal properties where they can do what they like. The objective of this study was to evaluate the extent to which principles of corporate governance are practiced in Nigerian banking industry. The target population of this study includes senior, junior and top management of the four selected banks in Enugu, namely: First Bank of Nigeria Plc, United Banks for Africa, Diamond Bank Plc and Eco Bank located in Enugu metropolis. The sample size (316) for this study was determined using Taro Yamani’s formula. The study found that 790 (59%) indicated agreement while 220 (16%) indicated disagreement as regards the extent of adoption of the principles of corporate government in the banking industry in Nigeria is significant. The hypothesis test result shows that the adoption of the principles of corporate governance in Nigerian banking industry is significant (Zc = 6.817 > Zt = 1.96; p<0.05). The study concludes that adherence to corporate governance has positive impact on the performance of the banking industry. Corporate managers in the Nigerian banking industry are significantly adhering to the principles of good corporate governance and this has reflected on the positive returns on investment in the industry. Information should be available as at when due to investors. A situation whereby investors get stale information regarding their investment portfolio is not in the best interest of investment in Nigeria.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 26 Apr 2019 11:22
Last Modified: 26 Apr 2019 11:22

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