EFFECTS OF CORPORATE GOVERNANCE DYNAMICS ON FIRM PERFORMANCE OF QUOTED BANKS IN NIGERIA
Abstract
This study examines the effects of corporate governance on firm performance. Ordinary least square of data analysis was adopted. The data used were sourced from the annual report of the selected banks. The specific objectives of the study are to examine the effect of directors’ remuneration, determine the effect of board size, to ascertain the effect of board duality, and to investigate the effect of board gender on firm performance of quoted banks. The study revealed that director’s remuneration, board size, and board gender have negative influence on profitability while BOARD DUALITY HAS POSITIVE effect. The study concludes that Nigerian banks should apply good corporate governance principles to achieve organizational objectives. The study recommends among others that board size should be reduced to the barest minimum since it influences the PAT negatively.
Keywords
Full Text:
PDFReferences
Abdullah, S.N (2006). "Directors remuneration, firm's performance and corporate governance in Malaysis among distressed companies". Corporate Governance: The international journal of business in society, vol. 6, pp. 162-174.
Adler, R. D. (2013). Women in the executive sulle correlate to high profits, Glass Ceiling Research Center, http://glass-ceiling.com/InTheNewsFolder!
HBRArticlePrintablePage.html. Akinyomi O. J. (2015): Corporate Governance and Profitability of Nigerian Banks-Asian Journal of Finance & Accounting ISSN 1946-052X 2915, Vol. 7, No.1
Ayse, A. Y. (2013). Profitability of Banking System: Evidence from emerging markets. WEL International Academic Conference Proceedings (pp. 105-111). Antlaya, Turkey.
Bebchuk L.A. & Fred J.M. (2017): Executive Compensation as an Agency Problem. Journal of Economic Perspectives,
Bertrand, Marianne & Sendhil Mullainathan (2001). "Are CEOs Rewarded for Luck? The ones without Principles Are". Quarterly Journal of Economics 116 (August): 901-32
Bjarnadottir (2013) Gender diversification and financial performance: Evidence from Aarhus school of business, Aarhus University
Brick, L.E., Palmon, O. & Wald J.K. (2014). CEO compensation, director compensation, and firm performance: Evidence of cronyism? Journal of Corporate Finance, 12(3): 403-423.
Brunello, Giorgio: Clara Graziano & Bruno Parigi (2001). "Executive remuneration and firm performance in Italy". International Journal of Industrial Organization 19 (January): 133-61.
Campbell, Terry L., II & Phyllis Y. Keys (2002). "Corporate Governance in South Korea: The Chaebol Experience". Journal of Corporate Finance: Contracting, Governance and Organization 8 (October): 373-91.
Chang, Chun; Brian P. McCall & Yijianj Wang (2003). "Incentive Contracting Versus Ownership Reforms: Evidence from China's Township and Village Enterprises" Journal of Comparative Economics 31 (September): 414-28
Cheema, K. U. & Din M. S. (2016). Impact of corporate governance on performance of finns: A case study of cement industry in Pakistan. Journal of Business and Management Sciences, 1(14), 44-46.
Crumley, Chris R. (2018). "A study of the Relationship between Firm Performance and CEO Compensation in the US Commercial Banking Industry" Journal of Applied Management and Entrepreneurship, Vol. 13, No. 2, pp. 26
Core, John E. Robert W. Holthausen and David F. Larcker (2013). "Corporate governance, chief executive officer remuneration, and firm performance" Journal of Financial Economic 51 (March): 371-406.
Cooper, D. & Schindler, P. (2008), Business Research Method (7 Ed). New York McGraw-Hill.
Cosh, Andy & Alan Hughes (1997). "Executive remuneration, executive dismissal and institutional shareholdings". International Journal of Industrial Organization 15 (July): 469-92.
Dogan, E. & Smyth R. (2002) Board remuneration company performance, and ownership concentration: Evidence from publicly listed Malaysian companies. Asian Economic Bulletin 19 (3): pp. 319-347.
Dogan, M., & Yildiz, F. (2015). The impact of the board of directors' size on the bank's performance: Evidence from Turkey. European Journal of Business and Management, 5(6), 130-140,
Donaldson, I., & Davis, J.H. (2016). Stewardship theory or agency theory: CEO governance and shareholder returns, Australian Journal of Management 16: 49-65
Eagly, A.H. (2015) Sex differences in social behavior: A social-role interpretation. Hillsdale, NJ: Erlbaum.
Eagly, A.H.& Wood, W., & Diekman, A.B.(2014). Social role theory of sex differences and similarities: A current appraisal. In T. Eckes & H.M. Trautner (Eds.). The development social psychology of gender (pp. 123-174). Mahwah, NJ: Erlbaum.
Eagly, A.H. & M.C. Johannesen-Schmidt (2001). "The leadership Styles of Women and Men, "Journal of social Issues, 57, pp. 781-797 Form Bulgaria". Labour Economie 3 (October): 319-36.
El Akremi A Roussel P, & Trepo G. (2001) CEO compensation strategies: consequences on the structure and management of executive pay working paper.
Jensen, Michael C. & Kevin J. Murphy (1990). "Performance pay and top-management incentives". Journal of Political Economy 98 (April): 225-64. Joh, Sung Wook (1999). "Strategic managerial incentive remuneration in Japan: Relative performance evaluation and product market collusion". Review of Economics and Statistics 81 303-13.
Ivan Brick A1, Oded Palmon A.2, John K. Wald (2006). CEO compensation, director compensation, and firm performance. Evidence of cronten
John E. Core, Robert W. Ho Ithausen. David F. Larcker, (1998). Corporate governance chief executive officer compensation, and firm performance JEL classification G30; G32, 133, 1.22. Kato, Takao & Cheryl Long (2005), "Executive Remuneration, Firm Performance, and State Ownership in China: Evidence from New Panel Data William Davidson Institute Working Paper no.690 (revised in November 2004). University of Michigan.
Kato, Takao & Katsuyuki Kubo, (2003). "Ceo Remuneration and Firm Performance in Japan: Evidence from New Panel Data on Individual Cen Pay Working Paper No. 210, Center on Japanese Economy and Business, Columbia Business School (forthcoming in Journal of the Japanse and International Economies)
Kato, Takao; Woochan Kim & Ju Ho Lee. (2015), "Executive Remuneration, and Firm Performance
Kim, K.A., & John R. Nofsinger, (2017), Corporate Governance. Second Edition. New Jersey: Pearson Prentice Hall Klapper, Leora F. & Inessa Love (2002) "Corporate Governance, Investor Protection and Performance in Emerging Markets". Forthcoming in Journal of Corporate Finance.
Kurawa (2014), Executive compensation and financial performance in Nigeria executive Journal publishing house
Mathoko, J. Mathoko F., & Mathoko, P. (2007) Academic Proposal Writing. Nakuru, Kenya: Amu Press. Morck, Randall Masao Nakamura. (2017). "Banks and Corporate Control in Japan". Journal of Finance (February): 319-39.
Murphy, Kevin J., (2014), Executive Remuneration, In Handbook of Labor Economics: Volume 3b Amsterdam; New York and Oxford: Elsevier Science, North-Holland
Narwal & Jindal (2015) Corporate governance and profitability in India, International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264) Vol. 3, No. 2, April 2015.
Ofor & Jideofor (2015) Board shareholding and corporate profitability in Nigeria, Universal Journal of humanities physical, social & management science (UJHPSMS)
Parthasarathy, A. Menon, K, & Bhatthacherjee, D., (2016). "Executive Compensation. Firm Performance and Corporate Governance: An Empirical Analysis", http://ssm.com (Downloaded January 11, 2010). Qaiser Rafique Yasser, Harry Entebang & Shazali Abu Mansor, (2011) Corporate governance and Firm performance in Pakistan: The case of Karachi Stock
Exchange (KSE) -30), pp.482-491. Journal of Economics and International Finance Vol.3
Sudarsono, R., (2002) "Kompensasi Manajemen dan Kinerja: Upaya Pengendalian Agency Conflict". Jurnal Administrasi dan Bisnis, Vol. 2, January, Hal. 35-36.
Terjesen, S., Sealy, R & Singh, V. (2015). Women Directors on Corporate Boards; 4 Review and Research Agenda, Corporate Governance: An International Review. vol. 17, No. 3. Pp.320-337.
Uwuighe, O. R. (2011). Corporate governance and financial performance of banks: A study of listed banks in Nigeria. Unpublished PhD Thesis, Covenant University Ogun State. http://dx.doi.org/10.5539/jjef.v4n2p260
Uwuigbe, O. R., & Fakile, A. S. (2017). The effects of board size on financial performance of banks: A study of listed banks in Nigeria. International Journal of Economics and Finance, 4(2), 260-267.
Vo, D. & Phan, T. (2013). Corporate governance and firm performance: Empirical evidence from Vietnam. http://www.murdoch.edu.au/school-of-Management- and Governance-document/Austra
Waseem "Mohammad Yahya" Al-Haddad, Salch Taher Alzurqan, Fares Jamil Al-Sufy (2016). The effect of Corporate Governance on the Performance of Jordanian Industrial Companies: An empirical study on Amman Stock Exchange,
International Journal of Humanities and Social Science Vol.1 No.4. Yaser A. Fallatah, (2015). CEO Compensation, Firm Performance and Corporate Governance: An Empirical Investigation of Saudi Arabian Companies.
Refbacks
- There are currently no refbacks.
Copyright (c) 2023 Festus Ubogu (PhD), Emmanuel Onyeka Ejiofor (PhD)
ISSN (PRINT): 2682 - 6135
ISSN (ONLINE): 2682 - 6127
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.