Abstract
The study seeks to examine the perception of stakeholders on the importance of corporate governance in the Nigerian banking sector. In particular the study seeks to examine the perception of stakeholders on the definition of corporate governance, familiarity with developments in corporate governance codes both on a national and international level, and the importance of corporate governance to the Nigerian banking sector. Using a mixed method approach involving the use of a quantitative questionnaire survey and qualitative semi-structured interviews with various stakeholders in the Nigerian banking sector, the study helps confirm the growing focus of corporate governance from a shareholder centric to a more stakeholder centric definition of corporate governance. The study also aids in confirming the increasing awareness of developments in corporate governance codes both on a national and international level and the importance of corporate governance to the Nigerian banking sector. While many of the stakeholders agree that international guidelines are relevant for the Nigerian banking sector, some stakeholders had reservations about transposing international guidelines directly into the Nigerian banking sector without a need to localise them to fit the applicable country-context. The study contributes to the growing body of literature in this area in developing countries. It is hoped that the findings derived from this study will contribute to the development of a theoretical framework on effective corporate governance practices in Nigeria. In a similar vein, the study also raises interesting questions for future researchers on corporate governance in Nigeria. It is anticipated that the study can inform banking regulators and policy makers with guidelines to improve the corporate governance standards in the financial sector.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Adegbite, E., & Amaechi, K. (2010). Multiple influences on corporate governance in sub-Saharan Africa: Actors, strategies and implications. Centre for the Study of Globalisation and Regionalisation (Working paper, 267–210).
Adegbite, E., Amaeshi, K., & Nakajima, C. (2012). Multiples influences on corporate governance practice in Nigeria: Agents, strategies and implications. International Business Review, 22, 524–538.
Adekoya, A. A. (2011). Corporate governance reforms in Nigeria: Challenges and suggested solutions. Journal of Business Systems, Governance and Ethics, 6(1), 38–50.
African Developmental Bank. (2007). Corporate governance strategy. Accessed June 14, 2012, from http://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/003_CG%20STRAT.CLEAN.REVSJ-MB.PDF
Akinpelu, O. A. (2012). Corporate governance framework in Nigeria: An international review. Bloomington: iUniverse.
Bakre, O. (2007). The unethical and sharp practices of accountants and auditors and the compromising stance of professional bodies in corporate world: Evidence from corporate Nigeria. Accounting Forum, 31, 277–303.
Basel Committee on Banking Supervision. (2010). Principles for enhancing corporate governance. Basel Committee on Banking Supervision.
BCBS Principles. (1999). Guidance on corporate governance practices for banking organizations. Basel Committee on Banking Supervision.
BCBS Principles. (2006). Principles for enhancing corporate governance for banking organisations. Basel Committee on Banking Supervision.
Berle, A. A., & Means, G. C. (1932). The modern corporation and private property. New York: Harcourt Brace.
Brand Finance. (2013). Is the global crisis nearly over? The annual report on the world’s most valuable banking brands. Banking 500. Accessed May 12, 2013, from http://www.brandfinance.com/images/upload/brand_finance_nation_brands_2013.pdf
Bryman, A., & Bell, E. (2007). Business research methods (2nd ed.). Oxford: Oxford University Press.
Bryman, A., & Bell, E. (2011). Business research methods (3rd ed.). Oxford: Oxford University Press.
Cadbury, S. A. (1992). Report of the committee on the financial aspects of corporate governance
Cadbury, A. (2000). The corporate governance agenda. Corporate Governance, 8(1), 7–15.
Central Bank of Nigeria. (2006a). Code of corporate governance for banks in Nigeria post consolidation. Central Bank of Nigeria.
Central Bank of Nigeria. (2006b). Code for best practice for banks and others. Central Bank of Nigeria.
Central Bank of Nigeria. (2010). Prudential guidelines for deposit money banks in Nigeria. Central Bank of Nigeria.
Central Bank of Nigeria. (2012). Draft code of corporate governance for bank in Nigeria.
Centre for International Private Enterprise. (2012). Corporate governance. Accessed June 23, 2012, from http://www.cipe.org/topic/corporate-governance
Clarke, T. (2004). Cycles of crisis and regulation: The enduring agency and stewardship problems of corporate governance. Corporate Governance: An International Review, 12(2), 153–161.
Commonwealth Association for Corporate Governance Guidelines (CACG) Principles. (1999). Principles for corporate governance in the commonwealth towards global competiveness and economic accountability. Commonwealth Association for Corporate Governance Guidelines.
Companies and Allied Matters Act of Nigeria (CAMA). (1990). Companies and allied matters act of Nigeria. 1990: Chapter 59 Laws of the Federal Republic of Nigeria
Cooper, S. M. (2007). Corporate governance in developing countries: shortcomings, challenges and impact on credit. Paper presented at the modern law for global commerce congress to celebrate the fortieth annual session of UNCITRAL.
ECA. (2002). Guidelines for enhancing good economic corporate governance in Africa: United Nations Economic Commission for Africa.
Erkens, D. H., Hung, M., & Pedro Matos, P. (2012). Corporate governance in the 2007–2008 financial crisis: Evidence from financial institutions worldwide. Journal of Corporate Finance, 18(2), 389–411.
European Corporate Governance Institute. (2014). Index of corporate governance codes. Available from http://www.ecgi.org/ (Accessed January 22, 2014).
Financial Reporting Council of Nigeria. (2011). Financial reporting council act of Nigeria: Federal Republic of Nigeria Official Gazette.
Financial Reporting Council of Nigeria. (2016). National code of corporate governance (NCCG) 2016. Accessed January, 2016, from https://drive.google.com/file/d/0BxB1-bqcIt35SmM4NkltTjREQ00/view
Financial Stability Board. (2012). Compendium of standards. Accessed February 14, 2012, from http://www.financialstabilityboard.org/about/overview.htm
Garcia, V., & Liu, L. (1999). Macroeconomic determinants of stock market development. Journal of Applied Economics, 2, 29–59.
Hampel, S. R. (1998). Committee on corporate governance: Final report.
International Monetary Fund. (2008). Nigeria: Selected issues. IMF Country Report No. 08/65. Accessed June 22, 2012, from https://www.imf.org/external/pubs/ft/scr/2008/cr0865.pdf
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360.
Kauffmann, D., Kraay, A., & Mastruzzi, M. (2009). Governance matters VIII: Aggregate and individual governance indicators, 1996–2008 (World Bank policy research working paper, No. 4978: 1–105).
King Report I. (1994). King report on corporate governance for South Africa. Institute of Directors in Southern Africa.
King Report II. (2002). King report on corporate governance for South Africa. Institute of Directors in Southern Africa.
King Report III. (2009). King report on corporate governance for South Africa. Institute of Directors in Southern Africa.
Klapper, L. F., & Love, I. (2002). Corporate governance, investor protection and performance in Emerging markets (World Bank policy research working paper no. 2818).
Koke, J. (1999). Institutional investments in central and Eastern Europe: Investment and criteria of western portfolio managers. ZEW discussion paper, no. 99 (37).
Letza, S., Sun, X., & Kirkbridge, J. (2004). Shareholding versus stakeholding: A critical review of corporate governance. Corporate Governance: An International Review, 12(3), 242–262.
Lincoln, A., Adedoyin, O., & Croad, J. (2015). Fostering corporate social responsibility among Nigerian small and medium scale enterprises. In S. O. Idowu (Ed.), Corporate social responsibility: A global dimension of key initiatives implemented by corporate entities. Germany: Springer.
Mallin, C. A. (2012). Corporate governance (Fourth ed.). Oxford: Oxford University Press.
Mallin, C. A. (2015). Corporate governance (Fifth ed.). Oxford: Oxford University Press.
Munisi, G., Hermes, N., & Randoy, T. (2014). Corporate boards and ownership structure: Evidence from Sub-Saharan Africa. International Business Review. 10.1016/j.ibusrev.2013.12.001
Murunda, Z. (2006). Financial distress and corporate governance in Zimbabwean banks. Corporate Governance, 6(5), 643–654.
Mustafa, S. A., Othman, A. R., & Perumal, S. (2012). Corporate social responsibility and company performance in the Malaysian context. Social and Behavioural Sciences, 65, 897–905.
Nordberg, D. (2011). Corporate governance: Principles and issues. London: Sage.
OECD Investment Policy Reviews OECD Investment Policy Reviews: Nigeria. (2015). OECD Publishing. Accessed November, 2015, from https://books.google.co.uk/books?id=A_BzCQAAQBAJ&pg=PA248&lpg=PA248&dq=Supervisory+Intervention+Guideline+%282011%29+Nigeria&source=bl&ots=oo_3dSIWPG&sig=pVrAinBnKTam4hNLW334daSbJR4&hl=en&sa=X&ved=0ahUKEwiT3dDts8rLAhUI0RQKHRpHCa8Q6AEIPDAF#v=onepage&q=Supervisory%20Intervention%20Guideline%20%282011%29%20Nigeria&f=false
OECD. (1999). OECD principles of corporate governance. France: OECD Publications. Accessed November, 2015, from http://www.ausncp.gov.au/content/docs/19990101_corporate_governance.pdf
OECD Principles. (2004). Principles of corporate governance: Organisation for economic co-operation and development.
OECD Steering Group on Corporate Governance. (2010). Corporate governance and the financial crisis: Conclusions and emerging good practices to enhance the implementation of the principles.
Ofo, N. (2014). Historical development of corporate governance in Nigeria. Accessed January 17, 2014, from http://thecorporateprof.com/historical-development-of-corporate-governance-in-nigeria/
Okeahalam, C. C., & Akinboade, O. A. (2003). A review of corporate governance in Africa: Literature, issues and challenges. Paper presented at the Global Corporate Governance Forum.
Olayiwola, W. K. (2010). Practice and standard of corporate governance in the Nigerian banking industry. International Journal of Economics and Finance, 2(4), 178–189.
Otobo, E. E. (1997). Regulatory reform in support of privatization: Patterns and progress in Africa. African Journal of Public Administration and Management, 8–9(2), 25–50.
Proimos, A. (2005). Strengthening corporate governance regulation. Journal of Investment Compliance, 6(4), 75–84.
ROSC. (2004). Report on the observance of standards and codes (ROSC). Washington: World Bank. Accessed November, 2015, from http://www.worldbank.org/ifa/rosc_aa_nga.pdf
ROSC. (2011). Report on the observance of standard and codes (Nigeria), accounting and auditing. World Bank. Accessed November, 2015, from http://documents.worldbank.org/curated/en/440581468099577387/Nigeria-Report-on-the-observance-of-standards-and-codes-ROSC
Sarbanes-Oxley Act (SOX). (2002). Congress of the United States of America (2002)
Saunders, M., Lewis, P., & Thornhill, A. (2012). Research methods for business students (Sixth ed.). Essex: Pearson.
Securities Exchange Commission (SEC) Code. (2003). The code of best practices of corporate governance in Nigeria: Securities and Exchange Commission.
Securities Exchange Commission (SEC) Code. (2011). Code of corporate governance for public companies in Nigeria. Securities and Exchange Commission
Sekaran, U. (2003). Research methods for business a skill building approach (Fourth ed.). New Jersey: Wiley.
Sewell, M. (2008). The use of qualitative interviews in evaluation. Tucson, AZ: The University of Arizona.
Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737–783.
Solomon, J. (2010). Corporate governance and accountability (Third ed.). West Sussex: Wiley.
Tricker, B. (2012). Corporate governance: Principles, policies and practices (Second ed.). Oxford: Oxford University Press.
Weimer, J., & Pape, J. C. (1999). A taxonomy of systems of corporate governance. Corporate Governance: An International Review, 7(2), 152–166.
Zahra, S. A., & Pearce, J. A. (1989). Boards of directors and corporate financial performance: A review and integrative model. Journal of Management, 15(2), 291–334.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing AG
About this chapter
Cite this chapter
Lincoln, A., Adedoyin, O. (2017). Stakeholder Perception of Corporate Governance Codes and Frameworks in the Nigerian Banking Industry. In: Aluchna, M., Idowu, S. (eds) Responsible Corporate Governance. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-55206-4_10
Download citation
DOI: https://doi.org/10.1007/978-3-319-55206-4_10
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-55205-7
Online ISBN: 978-3-319-55206-4
eBook Packages: Business and ManagementBusiness and Management (R0)