Corporate Governance and Organizational Performance in Nigerian Banks

Abstract

The main objective of this research study among others, is to investigate and/or examine the role of good corporate governance on the performance of Nigerian banks.  The study adopted a survey research design which was conducted using a selected bank in Asaba, Delta State. Data were collected through questionnaires  that were administered  to the selected (cross section of 100) respondents which was judged to be adequate for this study. Data collected were analyzed using the statistical package for social sciences (SPSS) regression software to establish the level of relationship between corporate governance, ethical behaviour/code of conduct, corporate social responsibility,  managers and board members relationship and banking performance in Nigeria. The study revealed that weak corporate governance has accounted for some recent corporate failures in Nigeria and has heightened poor corporate governance, large scale misappropriation of fund, financial crises, excessive executive remuneration, conflict of interest, bankruptcy, eventual collapse, etc.  Premised upon these findings, this study recommends that shareholders and stakeholders interests be properly and consistently aligned to ensure the banks promise of a future existence. Again, directors and managers should effectively discharge their fiduciary responsibilities and expeditiously increase their commitment, disclosure and transparency, improve on professionalism and shun all forms of fraudulent and corrupt practices.  Lastly, it also recommends that should ethics unit be established in organizations to curb the ills and excesses and introduce principle based policies on good governance and ethics, constraints to good corporate governance would have been reduced to a highest level and relevant control measures to promoting good corporate governance will ensure the highest standards of transparency, accountability and attain stellar performance.

Keywords: corporate governance, ethical behaviour, corporate social responsibility, shareholders relationship and performance.