Select Currency
Translate this page

CORPORATE GOVERNANCE INDICATORS AND FIRM VALUE

Format: MS WORD  |  Chapter: 1-5  |  Pages: 65  |  766 Users found this project useful  |  Price NGN3,000

GET THE COMPLETE PROJECT

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

In today’s business world, most organizations maintain a corporate code of conduct. It’s a statement of an organizations value, and includes standards for employee behaviours that align with these values. Developing a code of conduct helps an organization define how it operates, how it integrates it core value into everyday business operations and how it relates to key stakeholders (George B. Breen and Amg F. Lerman, 2011). There is no gain-saying the fact that, the idea of corporate governance has taken a primal place in the modern day business world. This is truly captured by the president of bank when he said that, “The proper governance of companies will become as crucial to the world economy is the proper governing of countries” (Wolfenson, 2015). Nigeria as an emerging economy looks to the private sector for the required quantuin leap, towards rapid development.

There is a reviewed emphasis of effective governance, practically for public limited liability companies. This is in recognition of the fact that, effective and efficient governance will improve with which the boards of such companies discharge their corporate and statutory responsibilities will substantially affect the overall performance of the economy. Recently corporate scandal has put company hands in the spotlight, legislation, soles of conduct and guidelines have been developed to improve corporate governance Richard Leblanc (2017). Mc Gee (2015) states that good corporate governance helps to increase share capital or price and makes its easier to obtain capital and that international investors tend to be reluctant to lend money or buy shares in a corporation that does not subscribe to good corporate governance principles. It is note-worthy to mention here that, the issue of corporate governance arose due to the separation of management and ownership in the modern corporation. In practice, the interest of the management could differ from the interest of the shareholders. The so called “management – shareholders “problem is reflected in management pursuing activities, which may be detrimental to the interest of the shareholders of the firm and society at large, (Mersah, 2010). Given this states of affairs, it become pertinent for management to render stewardship account to shareholders on how the resources put at their disposal were utilized, and the net effect of their effort of their firm.

 

A company whose performance increases over the years is expected to survive. The major causes of business collapse in Nigeria can be attributed to governance failures, (Wood, 2013). Tentatively, we can say that, corporate governance is related to performance of firms. Well–functioning corporate governance mechanism in emerging economics are crucial for both local firms and foreign investors interested in the tremendous opportunities that such economies provides. As such improvements in corporate governance can enhance investors confidence and increase these firms access to capital (Rajagopalam and Zhang 2014). A number of studies investigate the efficacy of firm governance structures in promoting performance. As pointed out by Core, Holthnusen and Larcker (1999), collective evidence from these studies is mixed, failing to provide a coherent pictures of what constitutions an optimal governance arrangement, nevertheless, this study investigates the effects and extend of corporate governance practice in some selected Nigerian quoted companies on overall firm values and performance also intends to uncover new results while confirming the keys finding and prediction of prior research. 

 

1.2  STATEMENT OF THE PROBLEM

Corporate governance is expected to affect directly, the performance of firm. A good number of ideas and theories has been put down by learned persons or corporate governances. Therefore, it will be of utmost interest to find out if such researches are not just for literature purposes but can be observed in the outwitted of an organization. It is also expected that, through influence on firm strategies and decisions with regards to inputs, output, innovations and markets, the governance arrangement should influence firm performance.This research work tends to find solutions to the following problems.

1.Does the board size have significant impact on the performance of the banks in Nigeria?

2.Does the composition of the board have significant impact on the performance of the banks in Nigeria?

3.Does insider ownership have significant impact on the performance of the banks in Nigeria?

 

1.3  OBJECTIVES OF THE STUDY

Transparency in corporate governance of a firm helps to maintain the confidence of investors. Actually or potential, as well as attract long – term capital, the more businesses are perceived to be accountable, transparent and socially responsible, the more they are perceived to be founded on integrity, the greater will be their competitive advantage which should in turn result in increased performance. The motivation to research of this study is guided by the fact that, in developing countries like Nigeria face with ineffective corporate governance practices, the manager do not bring about optimum performances of the company unlike in the advance countries. Therefore, the objectives of the study are:

i.To examine whether board size have significant impact on the performance of the banks in Nigeria.

ii.To examine if the composition of the board have significant impact on the performance of the banks in Nigeria.

iii.To determine whether the insider ownership have significant impact on the performance of the banks in Nigeria.

 

1.4  HYPOTHESES OF THE STUDY

The following hypothesis would be tested empirically in the course of this research work and the result would form the basis of conclusion and recommendation.

Hypothesis 1

Ho:The size of the board has no significant impact on the performance of the banks in Nigeria.

H1:The size of the board has significant impact on the performance of the banks in Nigeria.

Hypothesis 2

Ho:The composition of the board has no significant impact on the performance of the banks in Nigeria.

H1:The composition of the board has significant impact on the performance of the banks in Nigeria.

Hypothesis 3

Ho:The insider ownership of the board has no significant impact on the            performance of the banks in Nigeria.

H1:The insider ownership has significant impact on the performance of the banks in Nigeria. 

 

1.5  SCOPE OF THE STUDY

The research study focuses on corporate governance indicators and performance of Nigeria Banking Sector. The sample size is restricted to 16 selected banks quoted in the Nigeria Stock Exchange. They are selected in order to get the effect of corporate governance on different bank’s performance. The time frame of this study is 2010.

 

1.6  SIGNIFICANCE OF THE STUDY

The need for corporate governance has recently been receiving a great deal of attention in various national and international fora. Shareholders are now increasingly aware of the need for transparency in the governance of the firms they invest. Hence, the importance of such research work on corporate governance as it affects firm performance

The benefits derivable from the outcome of this research study include:

i.Creation of awareness to both existing and potential investors on matter concerning corporate governance arrangement of banks.

ii.The observers will have an insight into the importance of effective and transparent corporate governance.

iii.It will serve as a productive addition to the existing literature on corporate governance and performance.

iv.The result of the study is intended to serve as a suggestion to Nigerian companies this, they can greatly improve firm performance through a determined effort to improve their corporate governance.

v.To enlighten the investors on policies, laws, and reforms that are pertinent for their protection.

vi.It will also serve as reference point for further studies. 

GET THE COMPLETE PROJECT

Not What You Are Looking For?



For QUICK Help Call Us Now!

+234 813 292 6373


Here's what our amazing customers are saying

JONNAH EHIS
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Temitayo Ayodele
Obafemi Awolowo University
My friend told me about iprojectmaster website, I doubted her until I saw her download her full project instantly, I tried mine too and got it instantly, right now, am telling everyone in my school about iprojectmaster.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work
Very Good
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent
Merry From BSU
I am now a graduate because of iprojectmaster.com, God Bless you guys for me.
Excellent
Samuel From Ajayi Crowther University
You guys just made life easier for students. Thanks alot iprojectmaster.com
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent

HOW TO GET YOUR COMPLETE PROJECT INSTANTLY

  • Select 3 Project Topics of your choice from your Department.
  • Submit the 3 topics to your Supervisor for Approval.
  • Call Our Instant Help Desk on 0813-292-6373 and Get Your Complete Project Material Instantly.
  • All project materials on this website are well researched by professionals with high level of professionalism.

FREQUENTLY ASKED QUESTIONS

How do i choose a Project Topic?

Look for your department and select any topic of your choice

I have a fresh topic that is not on your website. How do I go about it?

How fast can i get a complete project from your website?

Within 15 minutes if the exact project topic is on our website

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

One of your topics suites my project, but the case study is different. What do i do?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

How do i get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: (+234) 813-292-6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!