TABLE OF CONTENTS
Declaration ii
Approval page iii
Dedication iv
Acknowledgements v
List of Tables                                                                                  viii
Abstract ix
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2      Statement of the Problem                                                                3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Hypotheses 4
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Limitations of the Study 5
1.9 Definition of Terms 6
1.10    Profile of Organization sunders Study                                            6
References
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1      Conceptual Framework                                                                    10
2.2      The Purpose and Objectives of Corporate Governance                     12
2.3      Features of Good Corporate Governance                               14
2.4      Principles of Good Corporate Governance                             15
2.5      Functions of Corporate Governance/Mission                             16
2.6      The Stakeholders in Corporate Governance                                 18
2.7      Causes of Corporate Governance Failure                                 22
2.8      Problems of Corporate Governance                                      24
2.9      Corporate Governance Controls                                                    25
2.10    Benefits of Good Corporate Governance                                           26
2.11 Corporate Governance and the Current Crisis in the
Nigerian Banking Sector                                                             26
2.12    Corporate Governance Practices in Emerging Economies          28
2.13    Corporate Governance, Capital Markets and Firm Performance    30
2.14 Corporate Governance Role Model Structure on Performance of
Manufacturing Firms 35
2.15    Actors in the Corporate Governance System                        37
2.16    Stakeholders through Effective Corporate Communication         39
2.17    Board Structure of Corporate Governance                               42
2.18 The Role of Internal Corporate Governance Mechanisms in
Organisational Performance 49
2.19    Corporate Financial Policy                                                         53
2.20    Theoretical Review                                                                    55
2.21    Empirical Review                                                                          61
2.22    Summary of Review of Related Literature                                   65
References
CHAPTER THREE: METHODOLOGY
3.1      Introduction                                                                                    75
3.2 Area of the Study 75
3.3 Sources of Data 75
3.4      Population of the Study                                                                     75
3.5      Description of the Research Instruments                                    77
3.6      Method of Data Analysis                                                            77
3.7     Validity of the Research Instrument                                               78
3.8      Reliability of the Research Instrument                                  78
References
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1     Data presentation and Analysis                                                   81
4.2      Test of Hypotheses                                                                          86
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1      Summary of Findings                                                                              91
5.2 Conclusion 91
5.3      Recommendations                                                                           91
5.4      Suggested Areas of Further Studies                                              91
Bibliography
Appendix
LIST OF TABLES
Table 3.1: Population and Sample Size Determination                         75
Table 4.1: Questionnaire Distribution                                                    81
Table 4.2: Sex Distribution of the Respondents                                       81
Table 4.3:Age Distribution of the Respondents                                          82
Table 4.4: Marital Status of the Respondents                                     82
Table 4.5: Educational Qualification of the Respondents                        83
Table 4.6: Category of Staff                                                                      83
Table 4.7: Working Experience                                                                84
Table 4.8: Benefits Derived from Corporate Governance Practice?            84
Table 4.9: Challenges Encountered in Corporate Governance Practice?     85
Table 4.10: Nature of the Relationship between Corporate Governance
and Organizational Effectiveness? 85
Table 4.11: Contingency Table for Testing Hypothesis (1) Referred Table 4.6 86
Table 4.12: Chi-Square Tests from the Frequency Cross Tabulation        86
Table 4.13: Contingency Table Referred Table 4.7 for Hypothesis Testing (2) 87
Table 4.14: Chi-Square Tests from the Frequency Cross Tabulation 88
Table 4.15: Contingency Table Referred Table 4.8 for Hypothesis Testing (3) 89
Table 4.16 Descriptive Statistics                                                89
Table 4.17 Correlations                                                                       89
ABSRACT
The study sought to identify the benefits derived from corporate governance practice, assess the challenges encountered in corporate governance practice, and determine the nature of the relationship between corporate governance and organizational effectiveness. The study has a population size of 613, out of which a sample size of 242 was realized using Taro Yamane’s Formula at 5% error tolerance and 95% level of confidence. The Instruments used for data collection were questionnaire and interview. A total of 242 copies of the questionnaire were distributed while 191(79%) copies were returned and 51(21%) were not returned. The Survey research design was adopted for the study. Three hypotheses were tested using Pearson product moment correlation coefficient and chi- square statistical tools. The findings indicated that good corporate governance practice improves corporate performance, improves access to international capital markets and attracts quality foreign investments. Supply of accounting information, demand for information and monitoring cost are challenges encountered in corporate governance practice. There is a positive relationship between corporate governance practice and organizational effectiveness. The study recommended that organisations should be providing shareholders with periodic reports on changes affecting the shareholders in the company, and should hold regular meetings with members of the Board of Directors to ensure that their roles should be done.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Corporate governance is a system by which companies (business organizations) are directed and controlled. Dignam and Lowry (2006:4) define corporate governance as a set of processes, customs, policies, laws and institutions affecting the way a corporation (organization) is directed, administered or controlled. They went further to state that corporate governance is meant to ensure accountability of certain individual in an organization through mechanism that try to reduce or eliminate the problem(s) that exist(s) between the principal and the agent.
Singh (2006:73) states that the broad concept of corporate governance is that it is a continuous process of the company which relentlessly pursues through full regulatory compliance, transparency, efficient operational practices, strong internal control and risk management systems, and operating with fairness and integrity to enhance the interest of stakeholders.
O’Donovan (2006:2) opines that corporate governance as an internal control system encompassing policies, processes, and people which serves the needs of shareholders and other stakeholders by directing and controlling management activities with good business savvy, objectivity, accountability and integrity. it is a system of structuring operating and controlling a company with a view to achieve a long term strategic goal to satisfy shareholders, creditors, employees, customers and suppliers and complying with the legal and regulatory requirements, apart from meeting environmental and local community need (social responsibility).
Ayida (2004:82) stresses that corporate governance is a set of mechanism through which outside investors are protected from expropriation by insiders (including management, family interest and /or governments). He states that expropriation of outsiders takes many forms: outright theft of assets, transfer pricing, excessive executive compensation, entrenchment of in-depth management terms, diversion of funds to unsuitable projects that benefit one group of insiders etc.
The recent spate of corporate failure in Nigeria especially the private/public owned organizations, has brought to the fore the need to re-examine the issues of corporate governance practices in Nigeria.
Kootnz and Weihrich (2006:425) assert that since 2001, there has been renewed interest in corporate governance in modern corporations due to high profile collapses of a number of US (multinational) firms such as Enron Corporation, MCI Inc., formally known as Worldcom, Tyco, a conglomerate and others. All these corporate failures have rekindled the need to ascertain what makes up corporate governance and the attendant reasons for its failures.
Molokwu (2003:2) states that corporate governance facilitates the achievement of economic development, provides the tools for plugging loopholes, checking of pilfering and leakages and encourages rationality and virtues which are highly needed in the Nigerian economy.
Johnson and Scholes (1999:19) opine that Corporate governance serving as a tool for corporate profitability in organizations involves corporate planning and control in competitive environment that strategically position them. In their analysis, it was clearly expressed that competition among corporate organizations about the present and future resources available in their environment determines their good corporate governance (competence) as well as achieving their profit objective.
In other words, the ability of corporate organizations to effectively and efficiently manage the complex factors of the environment (commercial, economic, political, technological, cultural and social) is very important in their profit making goals. In coping with competition, a review of opportunities and threats as well as strengths and weakness available in an industry is necessary so as to minimize costs and maximize profit (benefits). It is paramount to note that corporate governance could be utilized in achieving corporate or organizational goals when such an organization address some internal management problems that could hinder her from attaining competitive advantage over her colleagues in the industry. Some internal resources to corporate organizations in good governance includes: location or sitting of such organization, technology, favour, market, human resources and skills (proficiency), responsibility to each of the stakeholders (government, shareholders, creditors, customers, cultural influences etc)( Pool and Warner, 2000:681).
1.2 STATEMENT OF THE PROBLEM
