CORPORATE GOVERNANCE, CORPORATE STRATEGY AND CORPORATE PERFORMANCE: EVIDENCE FROM THE FINANCIAL INSTITUTIONS LISTED ON THE NIGERIAN STOCK EXCHANGE

Abstract

The study aimed at proving that corporate governance structures should work in tandem with other stakeholders of the company to fashion a robust corporate strategy for effective corporate performance. Undoubtedly, in most situations board squabble, ineptitude, inconsistent tenure of office during which members engage in arbitrage opportunities and rent seeking activities constitute the bane of achievement of corporate prime objectives. The study availed itself of the secondary data from Nigerian Stock Exchange Fact book where thirty three (33) out of forty eight (48) financial institutions were selected, tabulated and analyzed using Ordinary Least Squared (OLS) rule. A multiple regression model was applied in the analysis of the data. The result provided sufficient evidence of relationship between corporate governance and firm performance. It concluded that a talented board is a corner stone of an effective corporate governance system.

Key words: Corporate governance, corporate strategy, corporate performance, earnings management.