- IMPACT OF CORPORATE LEVEL MANAGEMENT ON THE EMPLOYEE’S PERFORMANCE (A Case Study of Fidelity Bank Plc.)
- THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONAL PERFORMANCE (A Study of Nigeria Bottling Company Plc)
- AN ASSESSMENT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANISATIONAL PERFORMANCE IN THE BANKING INDUSTRY (A STUDY OF FIRST BANK NIGERIA PLC.)
- THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANISATIONAL PERFORMANCE (MTN NIGERIA COMMUNICATION LIMITED IN LAGOS)
- EFFECT OF MARKET SEGMENTATION ON PERFORMANCE OF BREWERY INDUSTRY (CASE STUDIES OF GUINNESS NIGERIA PLC AND. NIGERIAN BREWERIES PLC)
- IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONAL PERFORMANCE (A case of Nigeria Bottling Company Plc)
- EFFECT OF MARKET SEGMENTATION ON PERFORMANCE OF BREWERY INDSUTRY (A CASE STUDY OF GUINNESS NIGERIA PLC AND NIGERIA BREWERY PLC.)
- THE IMPACT OF QUALITY CONTROL ON THE ORGANIZATION PERFORMANCE (A CASE STUDY OF GUINNESS NIGERIA PLC)
- INFORMATION TECHNOLOGY AND CORPORATE PERFORMANCE IN BANKING INDUSTRY (A CASE STUDY OF UNION BANK PLC)
- THE IMPACT OF CORPORATE GOVERNANCE MECHANISM ON FIRM PERFORMANCE IN NIGERIA (A STUDY OF CADBURY NIGERIA PLC)
CORPORATE GOVERNANCE AND FIRM PERFORMANCE (A CASE STUDY OF GUINNESS NIG PLC)
This study ascertains corporate governance and firm performance. The broad objective of the study is to find out the relationship between corporate governance and firm performance and also to ascertain if corporate governance is essential in achieving public confidence in corporate entities. Corporate governance helps promote enterprise accountability and enforcement of laws and regulation which has created a culture of compliance that enable business to improve and therefore be in good stead to attract further investment. Corporate governance has remained a great concern in a business world today. The primary source of data was adopted where probability sampling was used to select 100 personnel which serve as the sample size of the study. The chi-square statistical tool was used to test the stated hypotheses. The findings revealed that corporate governance is essential in achieving public confidence in corporate entities. It was concluded that good governance guarantees the realization of credible and conducive environment necessary for attainment of economic development. It was recommended among others that a high degree of mutual trust, respect and understanding should exist among the shareholders, board of directors and management, in order to avoid the incidence of conflicting goals and objectives.
TABLE OF CONTENTS
Title Page i
Chapter One: Introduction 1
1.1 Background to the Study 1
1.2 Statement of Problem 3
1.3 Research Questions 3
1.4 Objectives of the Study 3
1.5 Statement of Hypotheses 4
1.6 Significance of the Study 4
1.7 Scope of the Study 5
1.8 Limitations of the Study 5
1.9 Definition of Terms 6
Chapter Two: Review of Related Literature 8
2.1 Introduction 8
2.2 Definition of Corporate Governance 9
2.3 Concept of Corporate Governance 10
2.4 Parties to corporate governance 11
2.5 Principles of Corporate Governance 12
2.6 Mechanism and control of corporate governance 14
2.7 The Rational of Corporate Governance 16
2.8 Review of Development of Good Corporate Governance Practices in Nigeria 17
2.9 Overview of Corporate Governance Particle 19
2.10 The Role of the Boards of Directors 19
2.11 Corporate Governance and Public Sector in Nigeria 20
2.12 Good Governance Standard for Public Sector 22
2.13 Symptoms of Bad Corporate Governance 23
2.14 The Effectiveness of Corporate Governance 26
Chapter Three: Research Method and Design 30
3.1 Introduction 30
3.2 Research design 30
3.3 Description of the Population of the Study 31
3.4 Sample Size 31
3.5 Sampling Techniques 31
3.6 Sources of Data Collection 32
3.7 Method of data Presentation 33
3.8 Method of Data Analysis 33
Chapter Four: Data Presentation, Analysis
and Interpretation 34
4.1 Introduction 34
4.2 Presentation of Data 34
4.3 Data Analysis 34
4.4 Hypothesis Testing 41
Chapter Five: Summary of Findings, Conclusion
5.1 Introduction 46
5.2 Summary of Findings 46
5.3 Conclusion 47
5.4 Recommendation 48
Appendix A 52
Appendix B 53
1.1 Background to the Study
Corporate governance involves the directions and control of those who have responsibility for the day to day running of the organization. Corporate governance takes into consideration company stakeholders, company management, and the board of directors. Other participant may include employees and supplier, partners, customers, governmental and professional organization regulators and the community in which the corporation has a presence (Alfaki, 2005). However, there are so many interested parties, it is inefficient to allow them to control the company directly. Instead, the corporation operates under a system of regulations that allow stakeholders to have a voice in the corporation commensurate with their stake, yet allow the corporation to continue operating in an efficient manner. Corporate governance also takes into account audit procedures, in order to monitor the outcomes and how closely they adhere to goals, and to monitor the organization as a whole to work toward corporate goals. By using corporate governance procedures widely and sharing results, a corporate can motivate all stakeholders to works towards the corporation goal by demonstrating the benefits to stakeholders of the corporate success.
Corporate governance has succeeded in attracting a good deal of public interest because of its apparent important for the economic health of firms and society in general. Nwachukwu (2003) defined corporate governance as the processes and structures by which the business and affairs of an institution are directed and manage in order to improve long term shareholders value by enhancing corporate performance and accountability while taking into account the interest of other stakeholders. Corporate governance is therefore, about building credibility, ensuring transparency and accountability as well as maintaining an effective channel of information disclosure that would foster good corporate performance.
1.2 Statement of Problem
The effect and need to find adequate solution to failures of corporations in Nigeria is a matter that should not be put aside by a mere wave of hands this is one to the fact, good corporate governance has been discovered to be a major tool to the growth of the organizations in Nigeria
1.3 Research Questions
In the study the following research questions are asked in order to achieve the objectives of the studies
i. What is the relationship between corporate governance and firm performance?
ii. Is corporate governance essential in achieving public confidence in corporate entities?
1.4 Objectives of the Study
The primary objectives of this study are:
i. To find out the relationship between corporate governance and firm performance.
ii. To ascertain if corporate governance is essential in achieving public confidence in corporate entities.
1.5 Research Hypotheses
HO: There is no significant relationship between corporate governance and firm performance.
HI: There is significant relationship between corporate governance and firm performance.
Ho: The effect of corporate governance is not essential in achieving public confidence in corporate entities
HI: The effect of corporate governance is essential in achieving public confidence in corporate entities.
1.6 Significance of the Study
In regards to the relevance of the study it covers areas which are useful to the board of directors as regards to their mission, vision, objectives and strategy of a firm. It is relevant to shareholders by ensuring their confidence to invest in a particular business which involves protecting their rights.
Companies will benefit as it ensures the financial viability of business. It also indicates that the way in which companies are directed and controlled through governance principles of disclosure and accountability of a company. It is also relevant to the public sector. Public sector will benefit as it will ultimately improve economic growth and functional position of the country on a global level. It is also used as a determinant in developing policy, social economic analysis and poverty resolute issue.
1.7 Scope of the Study
This research essentially focuses on the process and structure in which business performance and the affairs of corporate are directed, managed and controlled. It also focuses on the dilemmas that result from the separation of ownership and control. A sample size of 100 was used for effective result.
1.8 Limitations of the Study
The factors that militate against researcher ability to come out with concrete findings during the course of researching include:
· Lack of necessary materials: The materials sought were not sufficient for the research as for text works and business journal needed were not gotten at the right time.
· Inadequate internet facilities as it relates to the research work.
· The problem of retrieving the questionnaire: Some questionnaires issued to respondents were lost during the attitudes of the respondents to disclose their personal information.
1.9 Definition of Terms
Corporate Governance: Is a combination of laws, regulations, listing rules and voluntary private sector practices that enable the corporation to attract capital, perform effectively, generate profit and meet both legal obligation and general societal expectation. It is all the corporation relationship among capital, product, services and even society at large.
Performance Management: This is a process for establishing a shared workforce understanding about what is to be achieved in an organization level. It is about aligning the organization objectives with the employees agreed measures, skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement in order to achieve the overall business strategy and create a high performance workforce.
Management: is a distinct process consisting of planning, organizing, starring, directing, coordinating, reporting and budgeting, performed to determine and accomplished stated objectives with the effective use of human and other resources.
Firm: A business concern, especially one involving a partnership of two or more people. It’s a business organization, such as a corporation, Limited Liability Company. Firms are typically associated with business organizations that practice law, but the term can be used for a wide variety or business operation units.