ABSTRACT
This research work is set out to investigate issues
challenges and opportunities in the Niger a Banking industry. Also to see if a
significant relationship exist between corporate governance, ethics and bank
failure. Relevant data were collected using well structured questionnaire. The
statistical technique for data analysis and test of hypothetical proposition is
chi-square (X2) The result of the findings revealed that the new
code of Corporate Governance and Ethics for Bank is adequate of the Curtail
Bank distress and that improper risk management, corruption of Bank official
and over expansion of Bank are the key Issue why Bank fails. It is concluded
that corporate Governance and ethics is necessary to the proper functioning of
banks and can only prevent banks distress only f it is well implemented.
Recommendation about corporate Governance and Ethics should be use as tool to
help stem the tide of distress, as it entails conformity with prudential
guidelines of the government. The Central Bank and NDIC should enforce the need
for all banks to have approved policies in all their operation.
TABLE OF
CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgements iv
Table of Contents v
Abstracts vii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement
of the Problem 3
1.3 Objectives
of the Study 4
1.4 Research
Questions 5
1.5 Statement
of Hypothesis 5
1.6 Significance
of the Study 6
1.7 Scope
of the Study 7
1.8 Limitation
of the Study 7
1.9 Definition
of’ Terms 8
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
of Corporate Governance 9
2.2 Corporate
Governance in the International Level 13
2.3 Corporate
Governance in Nigeria 14
2.4 Corporate
Governance and Ethics in the Nigeria Banking
Industry 16
2.5 Classification
of Unethical and Unprofessional Conducts in
Nigeria
Banking Industry Conflict of Interest 19
2.6 Benefit
of Corporate Governance in the Nigeria Banking
Industry 21
2.7 Weakness
in Corporate Governance for Bank in Nigeria 23
2.8 Opportunities
of Corporate Governance 24
2.9 CBN’s
Examination of Banks in Nigeria 26
2.10 Eco
Bank and Corporate Governance 29
CHAPTER THREE: RESEARCH METHOD
3.1 Introduction 31
3.2 Research
Design 31
3.3 Population
of the Study 31
3.4 Sample
Size 31
3.5 Sampling
Techniques 32
3.6 Method
of Data Collection 32
3.7 Sources
of Data 32
3.8 Method
of Data Analysis 33
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTEIRETATION
4.1 Introduction 34
4.2 Presentation
of Data 34
4.3 Test
of Hypothesis 41
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary
of Findings 44
5.2 Conclusion 45
5.3 Recommendations 45
References 48
Appendix I 49
Appendix II 50
CHAPTER
ONE
INTRODUCTION
1.1
Background to the Study
Financial scandals and
misappropriation around the world and the recent collapse of large corporate
organization in the USA and Europe have brought to the fore, again, the need
for the practice of sound corporate governance, which is the system by which
the affairs of companies are directed and controlled with the aim of increasing
shareholders value and meeting the expectation of other stakeholders. The case
of Enron in the U.S and many cases in U.K such as Polly Peck, Maxwell
Communication and British Ceylon Corporate Ltd (BCL) are all becomes stressing
the need for the adoption of good corporate governance in our various organizations.
In Nigeria, most especially the
financial industry the retention of public confidence through the enthronement
of good corporate governance and ethics remain an uncompromised duty given the
role of the industry in the credit to the needy sector of the economy, the
payment and settlement system and the implementation of monetary policy. It is a
veritable tool for ensuring corporate survival since business confidence
usually suffers each time a corporate entity collapses. Most of the business failures
in the recent past are attributed to failure in corporate governance and
ethical practices. For instance the collapse of bank in Nigeria in the early
1990s to date was as a result of inadequate corporate governance and ethics
practices such as insider related to credit abuses and poor risk appreciation
and internal control failures.
To stern the tide, this ugly trend
scholars and practitioners have advocated consistently different approach and
theories to corporate governance and industrial ethics. A critical tool in
corporate governance be adequate disclosure on the risk profile of banks in the
overall interest of the stakeholder (ICAN 2006, P. 345) defined
“corporate governance as the system by which the affairs of companies are
directed and controlled by those charged with the responsibility” Magdi and
Nadereh (2007) view corporate governance as ensuring that the business is run
well and investors receive a fair return. Oyejide and Siyibo (2001) defined
corporate governance as the relationship of the enterprise to shareholders or
in the wider sense as the relationship of the enterprise to society as a whole.
1.2 Statement of the Problem
Corporate failures in the world, in
recent time have kindled interest in corporate governance and ethics. Nigeria
as a nation has suffered a lot of decadeness both in the public and private
sector. The political and business climates had become so worse off that by
1999 when the nation returned to democratic rule, under the leadership of
Obasanjo, it was rated as one of the most corrupt nations in the world.
Most public corporation, such as
PHCN, NITEL, NNSL, water board etc were either dead or simply drain pipe of
public resources, while the few factories that were merely available were
working below capacity. The banks with their numbers leaving a trail of woes.
For investor, shareholder, suppliers, depositors employees, and other
stakeholders. The falsification of financial statement of Cadbury Nigeria PLC
in 2006, the liquidation of bank in 1980’s and 26 Bank in 1997 and the recent
sack of CEO’s of nine banks in Nigeria after CBN’s audit and investigation are
all evidence showing the sorry state of the country.
What measures should be put in place
to prevent the occurrence of corporate failure in the banking industry? How can
organization best practice corporate governance? How can banking industry? How
can we guarantee public confident?
The need to proffer solution to the
questions greatly informed this research work.
1.3 Objectives of the Study
This study seeks to examine how
corporate governance and ethic have been embraced in the Nigeria banking
industry. To attain this, we intend to:
1. Find
out how corporate governance is being practiced in the Nigeria
banking industry.
2. Ascertain
the extent of professional ethic adoption in our banking industry.
3. Examine
the role of shareholder and board of director, who manage the affairs of the
companies.
4. Examine
the corporate governance demand and requirement in the banking industry in
ensuring accountability and transparency.
5. Ascertaining
what were responsible for the poor performance of banks in the CBN’s audit of
2009/2010.
1.4 Research Questions
* Why is corporate governance and
ethics so important to the Nigeria banking industry?
* How
does corporate governance and ethics effect membership to
change in an organization?
* What
is the relationship between corporate governance and ethic to
members in the banking industry?
* To
what extent may the codes of corporate governance and ethics applied to the
Nigeria banking industry?
* What
area can corporate governance and ethics be address in the Nigeria banking
industry?
1.5 Statement of Hypothesis
Hypothesis One
Ho: Corporate
governance and ethics have no significant relationship with banks performance.
Hi: Corporate
governance and ethics have significant relationship with banks performance.
Hypothesis Two
Ho: Effective
Corporate Governance and ethics in the Nigeria Banking Industry does not raise
a high standard of accountability and transparency.
Hi: Effective
corporate governance and ethics in the Nigeria banking industry raise a high
standard of accountability and transparency.
Hypothesis Three
Ho: Corporate
governance and ethics does not help to avoid corporate failures and scandals.
Hi: Corporate
governance and ethics help to avoid corporate failures and scandals.
1.6
Significance of the Study
The importance of corporate
governance cannot be over emphasized. It is ii important tool in regulating
corporations. Corporate governance and ethics help to avoid corporate failures
and scandals. Corporate governance is seen as the structure of relationship
within an entity for making decision and its implementation. It is particularly
important because it ensure accountability and transparency in the manner an
organization is run. Stakeholder interest is best protected, there would be
public confident financial scandals and fraud would eliminate if sound
corporate governance and ethics are practiced.
1.7
Scope of the Study
This research work seeks to study the
emerging concept of corporate governance. Its role in financial accountability
and transparency, financial statements could represent a true and fair view
position of them.
It also intends to study the place of
ethics in our financial industry and the roles in governing corporate decision.
However, work is limited in scope to corporate governance and ethics in our
banking industry.
1.8
Limitation of the Study
The ideal cannot be attained in this
research work because of some obstacles that have been encountered. Amongst
these are:
• The
time duration for this research is not enough to carry out the research. The
scope has been limited in respect to population as well as the findings
thereof.
• Financial
difficulties have made it not possible for the researchers to meet all
designated population. Therefore, various sampling techniques will be employed.
• Difficulty
in getting information from the company’s staff under study. This is so because
most of the documents the researchers asked for where not made available. Also
most interviews were not granted and some of the questionnaires sent out were
either destroyed, returned or not answered.
1.9
Definition of Terms
Corporate Governance: This is defined as the system by
which companies are directed and controlled.
Ethics: This is defines as the
philosophical analysis of human morality and conduct.
Financial Statement: This are the means of communicating
to interested parties information on the resources, obligations and
performances of the reporting entity or enterprise.
Fraud: Can be defined as a deliberate or
intentional act by a privilege individual or group of individual s within or
outside the organization, which results in a misrepresentation of financial
statement.
Central Bank of Nigeria: Is defined as a banking system in
which a single bank has a complete monopoly in the note issue.
Corporation: This is defined as an organization or
a group of organization that is recognized by law as a single unit.
Morality: Are principle concerning right and
wrong or good and bad behavior.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Buyers has the right to create
dispute within seven (7) days of purchase for 100% refund request when
you experience issue with the file received.
Dispute can only be created when
you receive a corrupt file, a wrong file or irregularities in the table of
contents and content of the file you received.
ProjectShelve.com shall either
provide the appropriate file within 48hrs or
send refund excluding your bank transaction charges. Term and
Conditions are applied.
Buyers are expected to confirm
that the material you are paying for is available on our website
ProjectShelve.com and you have selected the right material, you have also gone
through the preliminary pages and it interests you before payment. DO NOT MAKE
BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.
In case of payment for a
material not available on ProjectShelve.com, the management of
ProjectShelve.com has the right to keep your money until you send a topic that
is available on our website within 48 hours.
You cannot change topic after
receiving material of the topic you ordered and paid for.
Login To Comment