Corporate Government and Organizational Performance
This study was aimed at assessing the impact of corporate management on organizational performance: A case study of commercial banks in Uyo, Akwa Ibom State.
To achieve this, survey research method was employed. Respondents were drawn from five selected commercial banks in Uyo. A total of 120 respondents were drawn using simple random sampling techniques. Three research hypotheses were also set to give the study a focus.
A total of 120 questionnaires were administered on the respondents and 118 were retrieved representing 98.33%.
Data obtained were analysed using arithmetic mean rating and chi-square to test the postulated hypotheses. Findings revealed that the corporate governance has a significant impact on organizational performance.
To this end, the researcher recommended that business organizations should imbibe corporate governance and should entrench ethical behaviours, collective orientation as well as disclosure of timely information to stakeholders in order to boost confidence which will ultimately result in increase performance of organizations.
Over the years, keen interest has always been on engendering performance that will ultimately culminate in growth and continuous patronage. It has become a worldwide dictum that the quality of corporate governance makes an important difference to the soundness and unsoundness of business organizations.
Broadly speaking, corporate governance refers to the extent to which companies are run in an open and honest manner (Sanusi, 2003).
Thus, effective corporate governance practice incorporates transparency, openness, accurate reporting and compliance with statutory regulations among others.
Historically, antecedents indicate that financial crisis is a direct consequence of lack of good corporate governance; invariably one of the sources of instability in the business organization is lack or inadequate practice of corporate governance.
Wherever power is exercised to direct, control and regulates activities that affect people, there is need for good exercise of such power.
For corporate entities, particularly public liability companies, the exercise of power over the enterprise’s direction, the supervision and control of executive actions, concern for the effects of the enterprise on other parties and especially the environment, the acceptance of a fiduciary duty to be accountable, constitute the quintessential of corporate governance.
The organizational distress in the last decades has posed many challenges to corporate governance in organization. Organization distress can be associated to lack or avoidance of code of ethics and professionalism. Odozi, (2007) expound this posting that, “Ethics, like, corporate governance, transparency and accountability, etc, is a cliché that has been abused and misused”.
The failure of organizations in Nigeria, and has been largely due to inadequate corporate governance or leadership, and failure of professional ethics as manifested in numerous instances of creative accounting practices, professionals insensitive internal control and risk management position being seriously compromised or even colluding with fraudster.
Afolabi, A. & Amupitan M. D., (2015). Corporate Governance in the Nigerian Banking Sector: Issues and Challenges. European Journal of Accounting Auditing and Finance Research Vol.3, No.5, pp.64-89.
Agrawal, A. and C. Knoeber, (1996): Firm Performance and Mechanisms to Control Agency Prob1ms between Managers and Shareholders, Journal of Financial and Quantitative Analysis.
Akintoye 1. R (2010), Corporate Governance and Reporting, Paper presentation at Interactive Forum for Accountants organized by ICAN, Ikeja Lagos.
Anya, 0. A. (2003). Corporate Governance as an Effective Tool for Combating Financial and Economic Crimes. The Nigerian Bankers. October-December.
Arun, T. G. & Turner, J. D., (2002): Corporate Governance of Banking Institutions in Developing. Advisory Group on Corporate Governance (AGCG) Report on Corporate Governance and International Standards, Reserve Bank of India.
Donaldson L. & Davis J. H. (1994): Toward a Stewardship Theory of Management. Academy of Management Review, Vol. 22, 20-37.
Donaldson, T & Preston, L. E. (1995): “The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications” Academy of Management Review, Vol. 20, No. 1, 65-91.
Macey J. R. & O’Hara, M. (2001): The Corporate Governance of Banks. Economic Policy Review Vol. 16 No. 2 pp 89-102.
Magdi, R. and Nadareh R.(2002). Corporate Governance: A framework for implementation. Britain World Group Journal, 20, 123-132.
Mayer, C. (1999): Corporate Governance in the UK. A Paper presented at the Conference on Corporate Governance: A Comparative Perspective held in University of Oxford on l6t1 October.
OCED (1999). Principles of Corporate Governance. http://www.encycogov.com/
Odozi, V. (2007). Ethicsand professionalism in the banking industry: The role of the Honorary Senior Member. The Nigerian Bankers. April-July. Pp.22.
Okoi, I. 0., Stephen, 0. & Sani, J. (2014): The Effects of Corporate Governance on the Performance of Commercial Banks in Nigeria. International Journal of Administration and Management Research, Vol. 2, No.2.
Oman, C. P. (2001): Corporate Governance and National Development, OECD Development Center Technical Papers, Number 180 pp. 362 — 388
Shleifer, A. and Vishny R. W. (1997). A Survey of Corporate Governance. Journal of Financial Economics, 52(2), 737-783.
Sullivan (2000). Asian Economic Crisis and Corporate Governance Reform. Conference held on September 12 – 14, 1999, p. 3. Jensen, M., and Meckling, W. 1976. Theory of the firm: Managerial behaviour, agency costs, and ownership structure. Journal of Financial Economics, 3.305-360.
Weir, C. Laing, D. & McKnight, P. J. (2002): An Empirical Analysis of the Impact of Corporate Governance Mechanisms on the Performance of UK Firms, Working Paper.
Join Over 500,000+ Readers Online Now!
COPYRIGHT WARNING! Contents on this website may not be republished, reproduced, redistributed either in whole or in part without due permission or acknowledgement. All contents are protected by DMCA.
The content on this site is posted with good intentions. If you own this content & believe your copyright was violated or infringed, make sure you contact us at [[email protected]] to file a complaint and actions will be taken immediately.