• Cart:
  • Checkout
Corporate Governance Issues in the Nigerian Banking Industry

Corporate Governance Issues in the Nigerian Banking Industry

Corporate Governance Issues in the Nigerian Banking Industry

Uploaded on: 2020-08-26

$(USD)0.00

Corporate governance issues resulting from bad governance, fraudulent activities, insider
abuse, and corruption have attracted the attention of shareholders and regulators in the
banking industry. The financial crisis that erupted from the United States affected the
financial institutions of both developed and developing countries, among which Nigerian
banks belong. The Central Bank of Nigeria removed 8 managing directors and executive
directors due to bad governance, nonperforming loans of 61%, and toxic assets of $13.3
billion; the Central Bank injected 620 billion naira into the banks. The purpose of this
multiple case study was to develop an understanding of corporate governance strategies
needed to ensure regulatory compliance and enhance financial performance from the
perspective of senior management of the regulatory authority and corporate financial
leaders. Agency theory served as the conceptual framework for the study. The population
for this study was10 senior regulatory leaders and corporate financial leaders in Nigeria.
The data sources were semistructured interviews, research notes, codes of corporate
governance, and financial reports of banks. Member checking was used to improve the
credibility and trustworthiness of the data. After compiling, disassembling, reassembling,
and coding the data, 5 themes including the need for: improvement on compliance to
corporate governance regulations; effective board governance; training education and
awareness on best practices, strategic risk management and internal control; and strategic
and effective leadership. Potential implications for social change may include knowledge
for investors and the public, who have increasingly relied on financial services in Nigeria
to support personal and business goals to identify banks with best practices.
Section 1: Foundation of the Study
Since the actions of Enron in 2001, poor governance has caused corporate
financial misconduct, and subsequent failure of various banks (Chinaedu, 2011). The
financial misconduct committed by corporate financial leaders in collusion with their
executive directors adversely affected banks and the economy of nations. Financial
misconduct has prompted a call for good corporate governance and ethical leadership in
the banking sector. The division of management and shareowners of the companies
reflects agency-related problems related to conflict of interest and mismanagement
(Ogujiuba & Obiechina, 2011).
Corporate financial leaders use poor governance strategy as opportunities for
personal achievement without consideration for depositors and investors. Excessive risktaking
and poor corporate governance have affected the banking industry, resulting in the
global financial crisis (Oghoghomeh & Ogbeta, 2014). The exposure to excessive risk
taking is severe in banking business (Nyor & Mejabi, 2013). Corporate governance at
banks has failed to prevent risky lending practices, leading to a weak financial system
(Grove, Patelli, Victoravich, & Xu, 2011). The Nigerian banking sector witnessed
corporate misconduct resulting from bad governance by corporate financial leaders and
executive directors. As a result, the Central Bank of Nigeria (CBN) removed 8 of 24
Nigerian corporate financial leaders (Ezeoha, 2011). The focus of this study was to
explore corporate governance issues in the Nigerian banking industry and provide
strategies corporate financial leaders may use to implement good corporate governance to
improve banking performance and shareholders’ return.
2
Background of the Problem
Corporate governance has become an integral part of commercial banks’ financial
performance and returns to the shareholders. Corporate financial misconduct of leaders in
the banking sector has been a major problem in sustainability and performance of banks
globally, including in Nigeria. Vives (2011) asserted that the financial industry exhibits
severe market failure arising from excessive risk-taking because of the agency issue.
The global financial crisis of 2007-2009, which disrupted the financial sector, also
affected the Nigerian banking industry (Sanusi, 2012). The Nigerian banking sector
witnessed a significant collapse that affected some leading banks. The CBN classified 8
of 24 Nigerian banks as distressed because of nonperforming loans and 13.3 billion
dollars in toxic assets (Cook, 2011).
CBN removed the corporate financial leaders because of their poor governance
and corporate financial misconduct (Adegbite & Nakajima, 2011). Nwagbara (2012)
noted poor governance and unethical leadership are at the center of the corruption in
Nigerian banking sector. Oyerinde (2014) noted that regulators failed to avert the
financial crisis through required execution of regulations. The CBN needs to prompt
banks to adopt good corporate governance practices through implementation of rules and
regulations for improved performance and value for shareholders (Nworji, Adebayo, &
David, 2011). Corporate financial executives should ensure alignment with riskmanagement
objectives and self-regulation critical to self-governance, diligence, control,
and adherence to their strategies within the structure of the regulators in the country
(Onuoha, Ogbuji, Ameh, & Oregwu, 2013).
3
Problem Statement
The Central Bank of Nigeria identified eight of 24 Nigerian banks as distressed,
with total nonperforming loans of 32.8% (Alabede, 2012). Nigerian banks had
approximately $10 billion in toxic assets (Alawiye-Adams & Afolabi, 2014). The CBN
removed the chief executives and directors of the banks because of corporate financial
misconduct and dedicated 4.1 billion in bailout funds for the affected banks (Ezeoha,
2011). The CBN removed corporate executives because of bad governance, excessive
risk taking, and corporate financial misconduct (Adegbite & Nakajima, 2011). The
general business problem was that safeguarding banking patrons’ funds is a major
concern for regulators stemming from inadequate, corporate governance in banks
(Adegbite, 2012). The specific business problem was some corporate financial leaders
have limited corporate governance strategies to ensure regulatory compliance to enhance
organizational financial performance.
Purpose Statement
The purpose of this qualitative multiple case study was to explore corporate
governance strategies corporate financial leaders need to implement to ensure regulatory
compliance to enhance organizational financial performance. According to Joshua,
Joshua, and Tauhid (2013), corporate financial misconduct in banks stemming from
noncompliance with corporate governance codes has spawned concerns about the
principles of the banking industry. The target population for this study was regulatory and
corporate financial leaders of Nigerian recapitalized banks who regulate, supervise, and
manage the Nigerian banking industry. The population is appropriate for this study as the
4
accessibility, experiences, and perceptions about corporate governance of these
individuals could lead to a deeper understanding of the problem (Adegbite, 2012).
The research findings from this study may contribute to positive social change by
allaying the corporate governance concerns of banking customers and society. The
knowledge from the study findings might lead to the formulation of corporate governance
strategies for corporate financial leaders to protect depositors and shareholders. The
confidence in investments with no fear of misappropriation provides the confidences to
investors necessary for engaging in positive social change oriented endeavors and
increase business empowerment, and improved quality in service offerings.
Nature of the Study
The focus of this qualitative multiple case study was to explore corporate
governance strategies Nigerian corporate financial leaders need to ensure regulatory
compliance to enhance organizational financial performance. A qualitative approach was
appropriate for this study because the method facilitates researchers to explore the
complexities of individuals’ conduct from the perspectives of the participants in respect
to the present phenomenon (Yin, 2011). Qualitative researchers use interviews,
observations, and other relevant information to obtain research data (Sargeant, 2012).
Corporate governance researchers often use qualitative methods to gain insight into
complex and multifaceted phenomena of corporate governance practices (Agyemang &
Castellini, 2015). Researchers use a quantitative methodology in contrast, to determine
distinctive links between or among variables (Payne & Wansink, 2011; Tacq, 2011). A
quantitative method was not appropriate for this study because the aim was not to
5
distinctive links between or among variables. Mixed-methods research includes
procedures combining qualitative and quantitative methodologies (De Silva, 2011). Since
data collection for the current study involved various sources to gain multifaceted insight
into the problems, as opposed to integration of statistical data with interview results, a
mixed-methods research methodology was not appropriate for this study.
I used a multiple case study design, which served to explore the corporate
governance issues within the Nigerian banking industry. According to Yin (2014), case
study design facilitates researchers to explore a multifaceted social phenomenon. Barratt,
Choi, and Li (2011) noted that case study allows researchers to explore numerous data
sources in ensuring a multifaceted view of the phenomenon. Researchers use case studies
to explore actual and complex business situations (Erickson, 2012). Applying the casestudy
design for the proposed study aided in exploring a particular event or phenomenon
that occurred within the Nigerian banking industry. The selection of a multiple case study
design provided a valuable means for the exploration of participant’s perceptions in a
complex business situation as opposed to phenomenological, ethnographic, narrative, and
grounded design, which would not address the primary objective of this research study.
A phenomenological research design requires having an in-depth understanding
of individuals lived experiences with the phenomena under study (Yin, 2011). The
purpose of the research was not to study individuals lived experiences with the
phenomena under study. An ethnographic researcher explores the beliefs, language, and
behaviors of the chosen cultural group (Jansson & Nikolaidou, 2013). The focus of this
study entailed gaining insight into participants’ perceptions, as opposed to the beliefs, and
6
behaviors of the chosen cultural group, an ethnographic approach is not appropriate for
the intended research. Grounded theory design requires using conceptualizations to create
a method that builds on previous knowledge to include an explanation of the information
on new cases (Fernandez & Lehmann, 2011). Grounded theory was not appropriate for
this study because the intent was not to conceptualize to create a method to include an
explanation in new cases. The research focus was on identifying potential improvement
opportunities for Nigerian corporate financial leaders in their implementation of
corporate governance to enhance financial performance.
Research Question
The overarching research question for this study was: What corporate governance
strategies do Nigerian financial leaders need to ensure regulatory compliance to enhance
organizational financial performance?
Interview Questions
The following were the interview questions for the study:
1. How would you define regulatory noncompliance with regard to corporate
governance in Nigerian banks?
2. How have the corporate financial leaders integrated regulatory compliance
with their strategy to achieve best corporate governance practices?
3. How have corporate financial leaders integrated regulatory compliance
with their strategy to improve financial performance?
4. What are the critical factors in mitigating regulatory noncompliance with
regard to corporate governance?
7
5. What are the critical factors in mitigating regulatory noncompliance with
regard to enhancing financial performance in the banking industry?
6. What governance strategies are most effective for corporate financial
leaders to improve financial performance?
7. How have corporate financial leaders implemented corporate governance
to ensure regulatory compliance in Nigerian banks?
8. How can corporate financial leaders affect a bank’s financial
performance?
9. How can Nigerian corporate financial leaders improve their knowledge of
corporate governance to enhance financial performance?
10. What other information would you like to add relating to this research?
Conceptual Framework
The conceptual framework for this study was the agency theory. Jensen and
Meckling developed the agency theory in 1976. Agency theory represents a contractual
agreement in which the principal appoints an agent to perform certain services on its
behalf through delegated authority (Isaac, 2014). The principals are the shareholders who
entrust their wealth to the agents (the corporate financial leaders) with specific
instructions to manage their wealth (Awotundun, Kehinde, & Somoye, 2011). Depositors
are also faced with the same principal-agent problems when entrusting their funds to a
bank as they face in a direct financing (Byford & Davidson, 2013). Depositors may rely
on reports available to investors through the supervision of the bank management on their
behalf, because of lack of access to monitor banks directly (Byford et al., 2013). The
8
foundation of agency theory hinges on the belief that the interests of the principals and
the managers differ (Dawar, 2014). The basic proposition was that effectual governance
aligns managers’ personal interests with those of the owners, eventually resulting in (a)
company conduct that reflects investors’ expectations and (b) higher company-level
financial performance resulting from reduced agency costs. The essential logic is that
efficient governance techniques lead to reducing agency issues by improving companies’
financial performance and competitive advantage (Hearn, 2013).
Segrestin and Hatchuel (2011) suggested that corporate governance stems from
the agency theory, imply that managers cannot be trusted with the corporate duty to
maximize shareholders’ value. Adegbite (2012) concurred noting that agency theory
essentially means a divergent aspect of pursuing self-interest over an unselfish objective.
Corporate financial misconduct is prevalent in Nigeria, where lack of transparency has
led the chief executives to drain their businesses and become billionaires while investors
become poor (Adegbite, 2012). Agency theory indicates solid corporate governance
mechanisms will align the interest of managers and shareholders and improve firm
performance (Grove et al., 2011). As applied to this study, the propositions of agency
theory allowed effective exploration of the strategies Nigerian corporate financial leaders
need to implement corporate governance and improve financial performance.
Definition of Terms
Agency problem: Agency problem refers to a situation when disparity exists
between managers’ and the shareholders’ interests, with managers pursuing personal
interests instead of maximizing shareholders’ wealth (Boshkoska, 2015).
9
Conflict of interest: Conflict of interest refers to a situation when managers pursue
their individual interests by working for personal gains rather than wealth maximization
of shareholders (El-Chaarani, 2014).
Corporate governance: Corporate governance refers to the mechanism that
controls the relationship between agent and principal by limiting and managing possible
conflict between management and shareholders (Guo, Smallman, & Radford, 2013).
Information asymmetry: Information asymmetry reflects the competitive
advantage information managers within an organization have over shareholders, often
resulting in conflict between managers and investors (Kasum & Etudaiye-Muthar, 2014).
Moral hazard: Moral hazard refers to excessive risk taken by managers with
results suffered entirely by shareholder (Fiordelisi, Marques-Ibanez, & Molyneux, 2011).
Strategic risk management: Strategic risk management is the means of
recognizing, evaluating, and managing risk within a strategy with the objective of
safeguarding shareholders’ wealth (Frigo & Anderson, 2011).
Assumptions, Limitations, and Delimitations
Assumptions
Assumptions are points within the study not validated, but held to be true by a
researcher (Rouleau-Carroll, 2014). The first assumption of this study was that the
participants of the study provided sufficient information and provided honest responses to
the interview questions. The second assumption was that the findings reflected the truth
effects on corporate governance to improve financial performance of banks in generating
high shareholder returns in Nigeria.
10
Because of the level of disclosure of corporate governance, another assumption
was that the research documents detailed information about noncompliance with the code
of corporate governance for performance in Nigerian banks. Banks in Nigeria have a
common annual year-end and disclosure structure under the regulation of the CBN
(Jibrin, Blessing, & Danjuma, 2014). The third assumption was that information provided
on the effects of corporate governance on the Nigerian banking industry was truthful. The
last assumption was that the semistructured interviews provided an opportunity to explore
common themes from the participant’s responses involving corporate governance
strategies corporate financial leaders need to improve financial performance.
Limitations
Limitations are issues beyond the control of a researcher and likely to affect the
outcome of the study (Rouleau-Carroll, 2014). The first limitation was that the financial
reports of the banks and other related documents from regulators, such as CBN and SEC
was provided at the discretion of the participants and used along with the research
transcript in this study.
The second limitation was that all the selected participants own the disposition to
provide their individual details in this study, and their perception concerning performance
and governance practices of Nigerian banks. In addition, semistructured interviews were
limited to only banking regulators senior leaders and corporate financial leaders. The
study did not involve senior management and corporate financial leaders with do not
have the requirement to participate in the research.
11
Delimitations
Delimitations are aspects of the study within the control of a researcher (Rouleau-
Carroll, 2014). Interviewing only regulators leaders in the Nigerian banking industry and
few corporate financial leaders represented the boundaries of the study, as the boundaries
meant the exclusion of other professionals not in the banking industry. Nonbanking
professionals may lack the knowledge of corporate governance strategies Nigerian
corporate financial leaders need to implement to ensure regulatory compliance for
enhance organizational financial performance. The findings were delimited to Nigeria.
Significance of the Study
Contribution to Business Practice
The study may have social and business value because of the focus on
understanding the Nigerian banks in terms of corporate performance of corporate
financial leaders. This information can facilitate discussion of actions Nigerian corporate
financial leaders need to improve corporate governance. The objective of corporate
governance is to ensure managers act in the best interests of shareholders
(Nkundabanyanga, Ahiauzu, Sejjaaka, & Ntayi, 2013).
Separation of shareowner and control in a firm creates agency problems (Htay,
Rashid, Adnan, & Meera, 2012). To forestall the agency problem, Htay et al. advocated a
board independent of executives for adequate monitoring to protect the interests of the
investors. The presence of an independent board may facilitate appropriate business
strategies to reconcile the conflict of interests between investors and executives, thereby
enhancing financial performance (Oyerinde, 2014). In the current unstable business
12
environment, with prospects of more uncertainty in the future, risk management is worth
the attention of executives at a strategic level (Elahi, 2012). Corporate financial leaders
with the capacity to pursue risk-management objectives and corporate governance can
use the knowledge from the study findings, to gain competitive advantage in the industry
(Elahi, 2012).
The pursuit of risk management objectives and adequate corporate governance
may lead to enhanced financial performance or a good business reputation in the industry
(Elahi, 2012). The findings from this study might improve corporate financial leaders’
ethical attitudes and financial performance. Most corporate financial leaders have failed
to adhere to the code of corporate governance for their industry, resulting in the financial
crisis globally, including that in Nigeria, which caused the removal, restructuring, and
poor performance of most banks.
Lu and Whidbee (2013) posited that even though the objective of a bank is to
maximize shareholders’ wealth, the decisions of the corporate financial leaders could
make the bank vulnerable to failure during financial crises. One of the elements of a
detailed customer manual impressed on corporate financial leaders is to ensure sound risk
management and control of the business environment (Otusanya, Lauwo, & Ajibolade,
2013). The enactment of appropriate risk management and adequate control of business
environment can lead to improvement of Nigerian banks’ performance, in turn,
influencing Nigerian economic development and growth. The implementation of
corporate governance by corporate financial leaders can improve performance and be
13
beneficial to Nigerian banks as well as to Nigerian financial markets and the economy
(Adegbite, 2012).
Implications for Social Change
Given the significance of governance and financial market issues, the discoveries
from the study might have positive effect on the public who increasingly rely on financial
services in Nigeria to support personal and business goals. Business continuity involves
an implementation of strategies to promote business development in the context of adding
value to the countries present and future environmental, economic, and social
requirements (Nwagbara, 2012). Enhancement of corporate governance may indicate
sound shareholders’ protection and may attract international investors, thereby
influencing the economic growth of the society (Waweru, 2014). The organization’s
contribution to society may secure the protection of assets and ensure business continuity
(Ogbogbomeh & Ogbeta, 2014). The findings from this study may provide leaders with
strategies for compliance to good corporate governance and enhance financial
performance. To improve good governance, executives must understand that ethical
leadership and ethical behavior must become a practice to reduce corporate financial
misconduct, excessive risk taking, and bad governance in Nigerian banking industry. The
effect on Nigeria’s economic growth and development may be valuable to the society.
A Review of the Professional and Academic Literature
The purpose of this qualitative case study was to explore the strategies corporate
financial leaders need to ensure compliance to corporate governance. Corporate
governance issues have attracted scholarly and regulatory debate since the collapse of
14
Enron and notable banks in the banking industry (Bozec & Dia, 2012). Stemming from
the financial crisis in the Nigerian banking sector, corporate governance has become a
major concern to the regulators (Osemeke & Adegbite, 2014). Corporate governance is
essential to global integrity in the financial industry (Joshua, Joshua, & Tauhid, 2013).
Corporate governance provides direction for corporate financial leaders to govern
the business of their banks (Jakada & Inusa, 2014). Poor governance, which includes
corporate financial misconduct of corporate financial leaders, is increasing and has
stimulated academic debate (Adegbite & Najikama, 2011). Corporate financial leaders
have often deserted essential components of good corporate principles for self-interest
(Ikpefan & Ojeka, 2013). The primary objective of corporate governance is to lessen and
resolve of any principal-agent issues (Verriest, Gaeremynck & Thornton, 2013) in
organizations.
Poor corporate governance has been the reason for the collapse in the Nigerian
banking sector in the past (Kasum & Etudaiye-Muthar, 2014). The analysis of corporate
governance and bank performance has often premised on the principal-agency
relationship (Oyerinde, 2014). With the growing concern about the adverse consequences
of noncompliance in corporate governance, including bank collapse, researchers, and
practitioners have advocated implementation of sound corporate governance as crucial to
sound firm financial performance. The literature review includes strategies that banks
may apply under good governance; theories addressing good governance include the
agency theory, stakeholder theory, and stewardship theory; and an explanation of the
importance of agency conflict in the banking sector still requires further study because of
15
the activities of the chief executives and their self-interest in most of the corporate
misconduct in the industry.
The agency theory served as the conceptual underpinning, as the theory applied to
corporate governance in the banking sector. Agency theory connotes the alignment of the
corporate financial leaders’ (agents), and the shareholders’ (principal) interest will
successively improve firm’s performance (Grove et al., 2011). Analyzing the corporate
financial misconduct that occurred in the banking industry in Nigeria may benefit from
using the lens of the agency theory as the conceptual link. A gap in the literature was
evident on corporate governance problems in Nigerian banks because of little research
conducted after the 2007-2009 financial misconduct in the banking sector. This study
entailed research that may fill the void in the literature and may contribute to the existing
body of academic literature.
Organization of the Review
The literature review addressed corporate governance issues in the Nigerian
banking industry. The literature review includes exploration of agency theory, the
conceptual framework used in the study. The discussion includes supporting and
contrasting theories of corporate governance. This section begins with an in-depth
discussion on agency theory, followed by discussion on corporate governance and further
discussion on corporate governance and agency theory. A brief overview of the
leadership role in organization and corporate financial leaders and banking business will
follow. The banking sector briefly explained follows, with discussion of the literature
profiling Nigeria and an overview of Nigerian banks, corporate governance, and banking
16
regulations, corporate governance in the banking industry, corporate governance issues in
the banking sector in Nigeria, and corporate governance and financial performance.
Strategy for Searching the Literature
The literature review incorporates vital study of an extensive knowledge of
information (Bryman, 2012) and includes evaluation of scholarly and peer-reviewed
research. The following databases constituted the repository sourced for the literature
review of this study: Electronic Business Source Complete, ProQuest, Emerald
Management Journals, Science Direct Journals, and Sage full-text collections through the
Walden University Library. Other search engines included Google Scholar and the Social
Science Research Network (SSRN).
The literature review also contains information on CBN, the Security and
Exchange Commission, (SEC), the Nigerian Deposit Insurance Corporation (NDIC), and
websites of several Nigerian banks. The selected keywords for conducting the research
were corporate governance, Nigerian banks, bank performance, financial performance,
agency theory, agency problems in banks, bank leaders, the financial crisis, qualitative
study, case study, and critics of agency theory. The results were filtered to represent peerreviewed
scholarly material published from 2011-2015. The filtered results limited the
available resources to current academic materials. The search revealed much literature on
corporate governance issues in banks and financial performance. Of 163 articles used in
the literature review, 153 (93.8%) were peer-reviewed, and 163 (100%) were within the
last 5 years. The articles used in the literature review contained published articles
between 2011 and 2015.
17
Application to the Applied Business Problem
The main purpose of this study was to explore strategies Nigerian corporate
financial leaders need to implement to ensure regulatory compliance to corporate
governance and enhance organizational, financial performance. The corporate financial
misconduct in banks because of noncompliance with corporate governance principles has
generated concerns about the integrity of the banking industry (Joshua et al., 2013). The
literature reviewed in this section includes an examination of various codes of corporate
governance in Nigeria, with a focus on the recently adopted version. The subsequent
section includes discussion of the strategies to implement good corporate governance and
descriptions of the concepts of effective corporate governance compliance for banks.
Agency Theory
Corporate governance researchers have used the agency theory to develop
solutions to agency conflicts between managers and investors (Renders & Gaeremynck,
2012). Corporate governance addresses individual responsibility and lessens principalagent
problems in an organization (Kapooria, Sharma, & Kaul, 2014). According to Isaac
(2014), agency theory postulates that effective corporate governance can lead to
improving performance and financial results.
The postulations made through the agency theory may indicate that the
relationship between the principal and the agent is a contractual agreement (Brandas,
2013). Principal contracts the agent to complete an assignment on the principal’s behalf
(Brandas, 2011). Information of agent's about the business can often be superior to that of
the principal in the banking industry. Information asymmetry can negatively affect the
18
capacity of the principal to monitor whether agents are adequately protecting the
principal’s interest (Sarenz & Abdolmohammadi, 2011). According to agency theory, the
main problem of corporate governance is guaranteeing that managers will represent the
interests of the investors above their own interests (Brandas, 2011). Sarenz,
Abdolmohammadi, and Lenz (2012) noted that agency theory assumes principals and
agents perform reasonably and use contracts to maximize their shareholders’ wealth.
Htay et al. (2012) explained the concept of the agency problem emerged from
separation of ownership and control. The major problem in agency relationships stem
from moral hazard and adverse selection, which might lead managers to maximize their
interests at the expense of investors’ interests (Fayezi, O’Loughlin, & Zutshi, 2012). The
agency problem presumes that organizations run the risk of situations involving deficient
reports and ambiguity (Mulili & Wong, 2011). Adverse selections often arise when
principals cannot deduce whether agents have performed the task paid for by the
principals (Mulili & Wong, 2011).
Agency problems can arise when investors have difficulties monitoring the funds
provided to managers; investors have difficulty ensuring managers do not squander their
wealth on unreliable business practices (Pande & Ansari, 2014). To reduce the agency
problem, board independence can enhance primary monitoring of managers to lessen
managers’ personal gains and reduce agency cost in line with shareholders’ interests
(Htay et al., 2012). Collective regulation, with active merger and acquisition, can occur to
punish erring managers. Htay et al. noted that joint ownership of directors and principals
through equity enables managers to pursue owners’ interests. The dominant problem of
19
agency theory is the agency problem arising when managers and investors have different
interests (Connelly, Ketchen, & Slater, 2011). Connelly et al. stated that access to
valuable information concerning the business could lead managers to acquire personal
gains rather than pursue the interests of the investors.
El-Chaarani (2014) noted that agency theorist postulates, minimum agency
costs accrue when the manager owns 100% of the capital. However, when manager’s
involvement falls below 100%, agency cost emerges because of a varying conflict of
interests within the organization. El-Chaarani noted that if the objectives of the principal
and the agent were identical, no conflict of interest and agency cost would occur.
However, corporate governance issues in the global banking industry have often revolved
around the conflict of interest of the manager when he or she pursues personal objectives
rather than the objectives of the owners of the business.
Godos-Díez, Fernández-Gago, and Martínez-Campillo (2011) asserted that
managers often do not operate to maximize shareholders’ return unless there is an
execution of proper governance systems to protect the interests of the investors. Amah
and Ahiauzu (2014) indicated that the exclusive reason for business is to maximize
profits for its investors. The agents are the management and boards of directors of
companies entrusted with maximizing shareholders’ wealth. Adewale (2013) noted, in a
perfect world, these directors would be those who operate in the best interests of the
organization and its investors.
Hassan and Halbouni (2013) stated that principals adopt a corporate governance
mechanism to monitor agent conduct. The underlying concept of agency theory is that
20
corporate governance mechanisms can check executive behavior, minimize the potential
for corporate leaders to serve their interests by exploiting information asymmetries, and
propel leaders to act in a manner that maximizes investors’ wealth to improve
organization performance (Hassan & Halbouni, 2013). As a step further, Hassan and
Halbouni noted that corporate governance is a set of mechanisms used in an organization
to solve agency problems.
Nyamongo and Temesgen (2013) suggested that corporate governance would
enhance long-term performance through proper monitoring of managers. An established
connection between improved corporate performance and insider directors will enhance
maximization of profit for investors (Nyamongo & Temesgen, 2013). Mustapha and
Ahmad (2011) noted the separation of ownership has extensive possible adverse
consequences on organizational value. In their study of agency theory and managerial
ownership in Malaysia, Mustapha et al. found managerial ownership is an important
component affecting organizations’ monitoring cost.
Tse (2011) argued that agency theory is a robust theory and that shareholders’
wealth maximization could be advantageous to other stakeholders. Tse also noted that the
funds from share ownership tie closely to residual claims after payments to suppliers,
employee salaries, creditor payments, and government taxes. Because investors want to
maximize the organization’s value, managers need to protect their interests by generating
optimum value for the shareholders. In a study of shareholders and stakeholders theory
after the financial crisis, Tse indicated to argue the organization must not be responsible
to the shareholders to maximize their wealth would be difficult.
21
Adegbite (2012) stated that agency theory steadily persists as the focal point for
structuring any corporate governance framework. Other theories have contributed to
understanding the issues concerning corporate governance in relations to banks.
However, only agency theory provides an adequate framework to understand the inherent
conflict of interest agents’ have and the problem of opportunism as depicted in the selfenrichment
and corporate misconduct that rocked the Nigerian banking sector.
Despite acknowledgment of agency theory as the prevailing model of corporate
governance, some scholars have challenged the idea in support of other theories
(L’Huillier, 2014). Regardless of the critics, agency theory has steadily advanced;
managers have increasingly merited consideration as shareholders’ agents (Segrestin &
Hatchuel, 2011). Godos-Diez et al. (2011) noted stewardship theorists, by contrast, regard
managers as stewards of organizations. Stakeholder theory takes a broader perspective,
advancing the view that the profitability of an organization is too restricted a target and
organizations must consider other factors, such as workers, suppliers, clients, and the
public (Mostovicz, Kakabadse, & Kakabase, 2011). However, the objective of the
company is sustainability (Mostovic et al., 2011).
Corporate Governance
The role of corporate governance in finance has increased in the last two decades
as a prominent and prevalent area of research (Ganguli, 2013). Corporate governance
issues around the world after the collapse of Enron, World.com, and Arthur Anderson in
the United States attracted research on improvement of corporate governance (Adewale,
2013). However, there is no standard, acceptable definition of corporate governance
22
(Wajeeh & Muneeza, 2012). Shungu, Ngirande, and Ndiovu (2014) noted several
definitions of corporate governance, most stemming from the work of Berle and Means
(1932) and Fama and Jensen (1983).
The term corporate governance stemmed from the Greek word kyberman, which
means to direct, control or govern (Ayandele & Emmanuel, 2013). Corporate governance
specifies the principles, procedures, or regulations to manage, supervise, and regulate
business (Adewale, 2013). Claessens and Yurtoglu (2012) described corporate
governance as techniques that guard operation of an organization to distinguish owners
from the managers. Claessens and Yurtoglu noted this definition is similar to that of Sir
Cadbury, who defined corporate governance as a process through which companies
receive management and direction.
According to Shungu et al. (2014), the Organization for Economic Cooperation
and Development defined corporate governance as a process by which organizations
receive direction on management on behalf of the shareholders. Nwagbara (2012)
described corporate governance as techniques and strategies for company control,
steering and directing managerial governance exploits. Yang (2011) defined governance
as a mechanism to resolve agency problems while Swamy (2011) presented governance
as decision-making techniques that replace contracts between owners and managers.
Inam and Mukhtar (2014) noted the definition of governance by Shleifer and
Vishny (1997) as the means through which investors in a firm assure each other of the
profit on their investments. Oghoghomeh and Ogbeta (2014) stated that corporate
governance guarantees the responsibility and integrity of managers to deliver a
23
reasonable return to their investors and meet other regulatory and contractual
responsibilities. L’Huillier (2014) also noted that agency theorists consider corporate
governance a fundamental contingency for measures of control to curb the actions of
agents (managers).
El-Chaarani (2014) suggested that to lessen agency conflict, corporate governance
presents directions and rules to align diverse interests, largely managers’ interests, with
those of the shareholders. Donaldson (2012) described corporate governance as
directives, approaches, and practices influencing the control of the company. El-Chaarani
further found that corporate governance outlines the system that established
organizational goals and methods to monitor performance. A lack of consensus regarding
the definition of corporate governance hinders researchers’ in determining its
characteristics. Oghoghomeh and Ogbeta (2014) observed that the collapse related to
corporate governance affected diverse organizations, largely profit-generating companies
such as banks and grew into a problem of international importance.
Corporate Governance and Agency Theory
Mulili and Wong (2011) described agency theory as a structure of organizations
that operates under an imperfect information and ambiguity. Filatochev, Jackson, and
Nakajima (2013) stated that the concept of agency theory has influenced some corporate
governance discussions. Amran, Periasamy, Zulkafli (2014) expressed the same idea that
agency theory dominates research on corporate governance. Agency theory has become
the foundation of corporate governance (Segrestin & Hatchuel, 2011). Agency theory
24
connects various facets of corporate governance with organizational performance
(Filatochev & Wright, 2011).
Jensen and Meckling (1976) stated that the fundamental idea embraced by agency
theorists is, in any particular position, managers may not operate to maximize investors’
returns but instead follow their self-interests, unless proper governance systems are used
to safeguard the interest of the investors. Agency theorists have asserted that to curb
managerial exploitation and its harmful consequences on performance, investors should
use a diversity of corporate governance mechanisms (Filatotchev & Wright, 2011). The
mechanisms include the board of directors monitoring and sizable outside investors to
improve the monitoring effectiveness of the managers and enhance organizational
performance (Harford, Mansi, & Maxwell, 2012). Several corporate governance models
revolve around principal-agency theory with links to divergence details of corporate
governance with organization performance (Filatochev & Wright, 2011).
The dominant proposition of agency theory hinges on the idea that shareholders
and managers have varying access to firm-specific information that presents conflicting
interests and risk preferences (Filatochev & Allcock, 2013). Managers (agents) may thus
become involved in self-serving conduct severe to shareholders’ wealth maximization
(Filatochev & Allcock, 2013). Filatochev and Wright (2011) reasoned that corporate
governance involves securing accountability of the executive and empowering the
regulatory manager to ensure that shareholders gain good returns on their investment in
an organization.
25
Corporate governance research is more advanced in developed countries such as
the United Kingdom and the United States than in developing countries, such as Africa
seems evident (Mang’unyi, 2011) and particularly Nigeria (Adegbite, Amaeshi, &
Nakajima, 2013). However, discussion of corporate governance increased recently
because of poor corporate governance in the Nigerian banking industry attributed to bad
corporate governance of the corporate financial leaders (Oghoghomeh & Ogbeta, 2014).
The lack of established risk-management mechanisms, limited internal control, increased
financial misconduct, self-enrichment, insider lending, and conflicts of interest have
resulted in a significant financial crisis in Nigeria; all these factors link to poor corporate
governance (Oghoghomeh & Ogbeta, 2014).
Leadership in Organization
Elahi (2012) noted that leaders’ attitudes toward possibilities in an organization
cannot relate to theory expectations. Isaac (2014) argued that organizations failed because
of poor organizational decisions by leaders in their efforts to appropriate profit.
Nwagbara (2012) opined that modern leadership theories connote leadership as a
practical and ethical situation. Nwagbara stated that leadership is a complement to ethics.
Nwagbara found that the issue of corporate financial misconduct had become part of
corporate financial leadership in the banking industry.
The performance of banks depends on the character of the organizations’
management (Omoijiade, 2015). Omoijiade noted that the executive attribute emphasizes
other parts of the banks. According to Omoijiade, leadership is a complicated and
26
personal issue that concerns individuals in a sophisticated circle of relationships within a
challenging corporate environment.
Bolton, Brunnermeier, and Velkamp (2011) suggested that a leader might reduce
the motives for mistrust with a reasonable dedication to an assignment. Leadership style
is essential to the strategic decision and performance of any corporation. The profitability
of banks relies mainly on the character of the leadership (Omoijiade, 2015). Business
leaders need to act by ethical expectations of their roles to safeguard the business and
profitability of their organizations.
Corporate Financial Leaders and Banking Business
Nwagbara (2012) argued that corporate financial leaders were the cause of
financial failure in the Nigerian banking sector. Jakada and Inusa (2014) suggested that
the poor governance and management style of corporate leaders had created enormous
problems in Nigerian banks. The leadership style led to the crash of the stock market and
corruption in the Nigerian economy, which revealed a complete lack of corporate
governance in the banking sector (Nwagbara, 2012).
A joint study of 24 banks in Nigeria by the CBN and NDIC revealed 10 banks had
significant nonperforming loans, poor governance, deficiency in capital adequacy, and
insolvent (Sanusi, 2011). The discovery led to the replacement of the corporate financial
leaders of the affected banks and an injection of 620 billion naira (Sanusi, 2011). Kasum
and Etudaiye-Muthar (2014) noted that a deficiency in corporate governance with
inherent agency problems was the primary cause of the financial crisis in Nigeria.
27
Reddy and Sharma (2014) attributed the financial disaster of 2007-2009 to the
deterioration and shortcomings in corporate governance implementation. Wajeeh and
Muneeza (2012) asserted the failure of organization led to the emergence of corporate
governance. Kasum and Etudaiye-Muthar, (2014) posited the agency problem is
predominant among corporate financial leaders and investors in the Nigerian banking
industry; but remedies are possible through a systematic practice of incentive contracts
and support from banks’ regulatory agencies.
Adewale (2013) conducted a qualitative case study using agency theory as a
conceptual framework to evaluate the efficiency of corporate governance codes in
averting future collapse and analyzing the past failure in Nigeria banking industry.
Adewale reasoned that in a country like Nigeria, where corruption is endemic, a process
of corporate governance must ensure accountability. A culture to strengthen the
governance of the firms must be in place. Adewale concluded corporate leaders must
learn ethical financial culture to avert corporate financial misconduct and establish a
system in which internal controls are active.
Khan (2011) conducted a study to review the effectiveness of corporate
governance and its efficient mechanisms for running and managing business operations.
The focus of study was on the problem of ownership and control, principal-agent
problems, and their effects on corporate governance. The outcome of the study revealed
that effective corporate governance curtails holding and control issues and demarcates the
boundary between investors and corporate leaders (Khan, 2011).
28
Acharya and Naqvi (2012) suggested that agency problems ensue when agents
(corporate financial leaders) do not protect principals’ interests or when agents take
excessive risks in granting loans. Acharya and Naqvi observed that the principal-agency
problem within banks was a leading cause of the bank collapses and corporate financial
leaders repeatedly gravitated to excessive risk-taking conduct. Agency conflicts arise
when collaborating parties pursue separate goals and tasks. Gottschalk (2011) suggested
that parties often commit to an agency relationship in a contract, and this arrangement
can lead to white-collar crime and severe consequences for a company. In the study of
corporate leaders involved in white-collar crime, Gottschalk found financial misconduct
of the corporate leader is the crime associated with the most severe consequences for a
company.
The Banking Industry
Since its independence in 1960, Nigeria has gone through enormous changes. Haji
and Mubaraq (2012) suggested that Nigeria transformed from an agriculturally driven
economy in the 1960s to oil and gas dominated economy and, currently, is the ninth
largest oil producing economy in the world. Other sectors such as telecommunications,
service and trading, technology, and banking, in addition, have affected the economy in
recent times (Haji & Mubaraq, 2012).
Chah and Gupta (2012) observed that banking has a significant role in the
economy of any country. Banks not only collect and distribute massive uncollateralized
funds as part of their fiduciary duty but also influence the establishment of credit (Chah
29
& Gupta, 2012). Banks can also hinder a country’s economy. Wajeeh et al. (2012) noted
that corporate governance is a protection against economic crisis.
The banking sector in Nigeria performed a critical role in supporting economic
improvement and expansion through the system of financial intermediation (Sanusi,
2011). The financial intermediation could be the central bank as lender of the last resort
to the commercial banks, thereby supporting other banks and business sectors.
Goodfriend (2011) stated that the central bank is the monetary authority of the nation,
executing the monetary policies and circulating money for the government.
Economists have argued that financial systems, with banks as their vital elements,
serve as the connection between various sectors of the economy and reassure a significant
level of specialization, competence, economies of scale, and settings conducive to
execution of different economic policies of government (Sanusi, 2011). The central bank
has the supervisory and regulating authority over all the banks in Nigeria as detailed in
the Bank and Other Financial Institutions Act (BOFIA) of 1991 (Ajibo, 2015). Malhotra,
Poteau, and Singh (2011) noted that the banking industry is the most significant financial
market. Banks are involved in financial intermediation by sourcing for savings at a rate
that will entice depositors and lend funds to creditors at an affordable rate to maximize
profits in a competitive environment (Tennant & Tracey, 2014). The responsibility of the
bank stretched above business interest of the banks but also maximization of shareholders
wealth (Capriglione & Casalino, 2014).
Tennant and Tracey (2014) posited that the strength of a bank’s revenue flow
relies to some degree on the manner in which managers appropriate the resources of a
30
profitable business. The Nigerian banking industry has experienced significant
restructuring and developing the financial market since December 2005 of bank
recapitalization (Aransiola, 2013). However, despite the supervisory and regulatory role
of the CBN, the regulator has not kept pace with the growth in the financial sector
(Omankhalen, 2012).
Pasiouras, Tanna, and Gaganis (2011) revealed that weak supervision could
change banks’ decision-making by compelling them to take risks while neglecting viable
business activities. Kasum and Etudaiye-Muthar (2014) suggested that poor corporate
governance was the primary cause of distress in Nigeria’s banking sector over past
decades. Adeyemi (2014) reported that the trouble in the banking industry often traces to
poor management of corporate governance. Adeyemi concluded the effect of executive
incompetence, insider corruption, and boardroom controversies emerging from problems
with ownership structure and inadequate internal control affected practices of corporate
governance in the Nigerian banking sector.
Hassan (2011) indicated that, in mid-2004, CBN adopted merger and acquisition
as a consolidation process to rectify the failure in the financial system. The banks
received instructions to increase their capital bases from $15 million to $192 million,
which caused some banks to raise $3 billion in the capital market (Fadare, 2011). Before
the consolidation exercise, the ownership of most Nigerian banks predominantly lay in
the hands of private individuals, but later, shifted to public ownership (Ezeoha, 2011).
The reform transformed 89 banks into 25 banks, but this situation was short lived as the
banks affected by another financial crisis, resulted in the survival of only 24 banks
31
(Oghojafor & Adebisi, 2012). The banks also enhanced internal corporate governance
positions (Ezeoha, 2011). The CBN repositioned the banks as a robust impetus for
Nigerian development and enhanced their corporate governance positions (Ezeoha,
2011).
The Nigerian banking industry witnessed another monumental financial crisis
provoked by the global financial crisis in 2009 (Sanusi, 2012). The Nigerian stock market
significantly failed by 70% in 2007-2009, and many banks rescued (Sanusi, 2012). The
financial crisis of 2007-2009 attributed to mismanagement and misrepresentation of the
banks’ financial performance (Oghojafor et al., 2012). Ojo and Ayadi (2014) stated the
global financial misconduct started in 2008 and collapsed the stock market in Nigeria,
primarily stemmed from financial mismanagement and corrupt practices by banks and
stock market management, which affected investors’ confidence in the stock market.
Biobele, Igbo, and John (2013) revealed corporate financial misconduct of
character of the corporate financial leaders led to the financial industry collapse that
affected the shareholders’ fund. Biobele et al. suggested that corporate financial
misconduct in Nigerian banks resulted in license revocation, which had adverse effects
on other stakeholders from the sudden events with prior knowledge of the bank's status.
The bank failure revealed a serious issue of corporate governance culture in Nigeria
compared to other countries following international best practices (Biobele et al., 2013).
Okereke, Abu, and Anyanwu (2011) noted the banking industry witnessed
different CBN legislative and regulation reforms with the aim of enhancing corporate
governance toward sustaining the industry. The intentions of the regulators, largely the
32
CBN, gravitated toward corporate misconduct awareness, avoidance of other devious
operations, bad debt retrieval, corporate restructuring, statutory financial recapitalization,
and good corporate governance (Okereke et al., 2011). Otusanya (2012) revealed bank
directors and executives were involved in corporate financial misconduct, resulting in
adverse outcomes from intrigue to avoid laws and regulations. Haji and Mubaraq (2012)
stated reforms introduced in the banking sector, clearly intended to induce better
practices in the Nigerian banking industry.
The CBN introduced the 2005 Code of Corporate Governance to correct poor
corporate governance and accountability practices in the banks (Haji et al., 2012). The
banking sector is vital to the economic wellbeing of a nation and requires adequate
monitoring and regulation to avoid systemic failure, as witnessed in the banking industry
globally. The poor governance and corporate financial misconduct in the Nigerian
banking sector was the motivation for this study to explore the corporate governance
issues in the Nigerian banking industry and to provide strategies corporate financial
leaders need to implement to reduce noncompliance with good corporate governance.
Profile of Nigeria Economy
Adegbite and Nakajima (2011) described Nigeria as Africa’s largest market for
goods and services. The 2006 census revealed Nigeria had a total population of 150
million people (Oghojafor et al., 2012). Nigeria has a landmass of 923,728 square
kilometers, double that of California and has vast reserves of water, crude oil, and natural
gas (Oghojafor et al., 2012). Oghojafor et al. noted Nigeria is one of the top crude oil
exporters of the world, also exporting other minerals and natural resources.
33
Obayemi and Alaka (2014) stated, before its independence in 1960, Nigeria was
under the control of the British, who instituted an Anglo-Saxon-based system of laws
dating back to the pre-colonial era. According to Adegbite (2012), the principal business
owners in Nigeria during the colonial period were British companies. Obayemi and Alaka
noted that after independence, Nigeria changed the Company Ordinance of 1922 to the
1968 Companies Act, with significant influence from the U.K. Companies Act of 1948.
Adegbite, Amaeshi, and Nakajima (2013) noted that thereafter, British law continued to
have a major influence on the legal structure of corporate governance and financial
reporting in the Nigerian Companies and Allied Matter Act (CAMA) of 2004 (as
amended by the Nigerian Government). Such laws include directors’ responsibilities,
disclosure prerequisites, insider dealings, minority shareholder protection, and
management remunerations (Adegbite, 2012).
The CAMA regulates and governs all profit and nonprofit concerns in Nigeria
(Adekoya, 2011). The military government passed these laws in Nigeria but recognized
input from few people in the absence of legislative debates (Adekoya, 2011). Despite the
laws and corporate governance codes in Nigeria, there have been challenges impeding
good governance. Ineffective and deficient legal and regulatory structures do not allow
enforcement and monitoring of compliance with the CAMA (Adekoya, 2011).
Adegbite and Nakajima (2011) stated that corporate governance in Nigeria
aggravated by financial misconduct across the country, uncertainty in government rules,
poor management, racial competition, religious tensions, and indigenous issues that cut
across the economy of Nigeria. Nigeria’s economy suffered setbacks caused by the
34
decadence of its major industries related to the military autocracy in Nigeria (Isaac,
2014). However, legislators have become aware of the absence of governance constraints,
inefficiency, and accounting misconduct in Nigerian banks (Isaac, 2014).
The banking industry and other financial institutions in the country encountered
distress in 1980 and 1990, leading to the Failed Bank (Recovery of Debt) and Financial
Malpractices in Banks Act, which sought to correct the failure of the banks and retrieve
the debt from the perpetrators (Isaac et al., 2014). While the banking industry went
through this difficult time, the state-owned enterprises (SOE) in Nigeria also failed to
uphold corporate governance in their dealings. The failure of the SOE resulted in the
privatization and commercialization of many enterprises (Isaac, 2014). The SOE
benefited from government subsidies, waivers, and transfers totaling N265 million (Isaac,
2014), equivalent to $1.55 million at N171 to $1. The previous and recent failures in the
banking industry and the SOE revealed that poor governance is an issue in Nigeria.
Corruption in the public and private sectors, including the banks and the need to
protect investors from the corrupt management in the Nigeria Stock Exchange, led the
Nigerian government to initiate codes of corporate governance for best practices (Isaac,
2014). Corporate governance in Nigeria is improving, and its objective is to ensure
principled guidelines, accountability, and transparency (Okereke et al., 2011). Corporate
governance in Nigeria is of great importance to investors as well as the economy of the
country (Adegbite & Nakajima, 2011). However, the peculiarity of the Nigerian business
environment has made the theory of corporate governance in Nigeria uncertain. Agency
35
theory and shareholders theory under

Write a review

Note: HTML is not translated!
    Bad           Good
Table of Contents
Section 1: Foundation of the Study ......................................................................................1
Background of the Problem ...........................................................................................2
Problem Statement .........................................................................................................3
Purpose Statement ..........................................................................................................3
Nature of the Study ........................................................................................................4
Research Question .........................................................................................................6
Interview Questions .......................................................................................................6
Conceptual Framework ..................................................................................................7
Definition of Terms........................................................................................................8
Assumptions, Limitations, and Delimitations ................................................................9
Assumptions ............................................................................................................ 9
Limitations ............................................................................................................ 10
Delimitations ......................................................................................................... 11
Significance of the Study .............................................................................................11
Contribution to Business Practice ......................................................................... 11
Implications for Social Change ............................................................................. 13
A Review of the Professional and Academic Literature ..............................................13
Organization of the Review .................................................................................. 15
Strategy for Searching the Literature .................................................................... 16
Application to the Applied Business Problem ...................................................... 17
Agency Theory...................................................................................................... 17
ii
Corporate Governance .......................................................................................... 21
Corporate Governance and Agency Theory ......................................................... 23
Leadership in Organization ................................................................................... 25
Corporate Financial Leaders and Banking Business ............................................ 26
The Banking Industry ........................................................................................... 28
Profile of Nigeria Economy .................................................................................. 32
Overview of Nigerian Banks ................................................................................ 35
Corporate Governance and Banking Regulation In General ................................ 38
Corporate Governance Issues in the Nigerian Banking Industry .......................... 45
Corporate Governance and Financial Performance .............................................. 52
Overview of Code of Corporate Governance Regulating Nigerian Banks ........... 55
The Code of Corporate Governance in Nigeria .................................................... 58
Corporate Governance Strategies ......................................................................... 62
Effective Board Governance ................................................................................. 63
Corporate Culture.................................................................................................. 65
Strategic Leadership in the Banking Industry ....................................................... 66
Internal Control and Mechanism in Banks ........................................................... 68
Bank Compliance with Regulations...................................................................... 69
Professionalism in the Banking Industry .............................................................. 71
Strategic Risk Management .................................................................................. 72
Conclusion of the Literature Review .................................................................... 74
Transition and Summary ..............................................................................................76
iii
Section 2: The Project ........................................................................................................78
Purpose Statement ........................................................................................................78
Role of the Researcher .................................................................................................79
Participants ...................................................................................................................81
Research Method and Design ......................................................................................85
Research Method .................................................................................................. 85
Research Design.................................................................................................... 87
Population and Sampling .............................................................................................92
Ethical Research...........................................................................................................94
Data Collection Instruments ........................................................................................97
Data Collection Technique ........................................................................................103
Data Organization Techniques ...................................................................................106
Data Analysis .............................................................................................................108
Reliability and Validity ..............................................................................................113
Dependability ...................................................................................................... 113
Credibility ........................................................................................................... 114
Transferability ..................................................................................................... 115
Confirmability ..................................................................................................... 116
Data Saturation.................................................................................................... 117
Transition and Summary ............................................................................................118
Section 3: Application to Professional Practice and Implications for Social
Change .................................................................................................................120
iv
Introduction ................................................................................................................120
Presentation of Findings ............................................................................................120
Emergent Theme 1: The need for improvement on Compliance to
Corporate governance Regulations ......................................................... 121
Emergent Theme 2: The Need for Effective Board Governance ........................ 138
Emergent Theme 3: Strategic Risk Management and Internal Control .............. 153
Emergent Theme 4: Training, Education, and Awareness on Best Practices ..... 158
Emergent Theme 5: The Need for Strategic and Effective Leadership .............. 165
Application to Professional Practice ..........................................................................169
Implications to Social Change ...................................................................................172
Recommendations for Action ....................................................................................173
Recommendation for Further Research .....................................................................174
Reflections .................................................................................................................175
Conclusion .................................................................................................................176
References ........................................................................................................................178
Appendix A: Informed Consent Form .............................................................................230
Appendix B: Letter of Invitation......................................................................................234
Appendix C: Interview Protocol- Semistructured Interviews With Open-Ended
Questions..............................................................................................................236

Testimonials

  • Abiona Philip
    21/03/2017

    I want to sell my project, how can i do that..

  • Faleti thomas kayode
    17/03/2017

    i want to sell a project how can i go about it. contact me 08134282683..

  • Abubu Joseph
    20/02/2017

    I have a project also to sell ..

  • Maximus
    18/01/2017

    i have up to five faculty of education project to sell, how do i go about it... 08145988604..

  • Grace
    07/01/2017

    Wow.... This is an Interesting Platform to Showcase Research Projects. Very User Friendly and easy t..

Newsletter