Corporate Governance System and Organisational Control in Nigerian Manufacturing Industries

Abstract

Corporate governance is one of the fundamental issues in the management of business organisations. The outright failure of corporate governance system can, therefore, be argued to be a major contributor to the collapse of many of the well-celebrated organisations that have littered the Nigeria corporate landscape. The focus of this study is to determine the effect of corporate governance on stakeholders' behaviour in the management of organisational resources. Also, to determine how internal governance factors affect organisational resources control. The population comprises of the entire quoted manufacturing companies on Nigerian Stock Exchange drawn from textiles, chemical and paints, building materials, breweries, industrial and domestic product. While simple random sampling technique was used to choose a sample size of seventy-five (75) executive directors. Statistical Package for Social Sciences (SPSS) version 20.0 software was used to analysed the data and the hypotheses were tested using Kendall’s W Test. Result shows that corporate governance has a significant effect on stakeholders' behaviour in the management of organisational resources. Equally, internal governance factors have a significant effect on organisational resources control. The study, therefore, recommends among others that there is a need to revisit code of corporate governance and harness these codes that are scattered in various Acts, to enact a single corporate governance Act in order to reawake stakeholders' trust; proper control; accountability; transparency; and effective management of organisational resources.

Keywords: Corporate Governance System; Organization Control; Manufacturing Industries