The Effect Of Corporate Governance On Organization Performance In Nigeria
Corporate governance is regarded as the key foundation for effective organizational performance and for organizations to be more productive, governed and controlled. The level of collapse of institutions and failure of firms across the world has also emphasized the need to study the ways by which organizations are governed and controlled. Lee (2008) defined corporate governance as a system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance.” It has been reported that the survival of firms is associated with the type of corporate governance and management followed in the organization. Corporate Governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade creditors, suppliers, customer and communities affected by the corporation’s activities. Informal stakeholders are the board of directors, executives and other employees. It guarantees that an enterprise is directed and controlled in a responsible, professional, and transparent manner with the purpose of safeguarding its long-term success which is intended to increase the confidence of shareholders and capital market investors.
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Frequently Asked Questions
Does good governance matter for co-operatives’ performance?
The results demonstrated that good governance (p-value of 0.095 (p<0.1) and t=1.669 (more than 1.64) has a moderate relationship between members’ participation and cooperatives’ performance. On the other hand, good governance did not strengthen the relationship between the extension officer and co-operatives performance.
How does corporate governance affect organisational performance?
Thus, the practice of a good corporate governance system helps to provide a degree of confidence that is necessary for the proper functioning of the market economy and hence organisatiomal performance (Momoh and Ukpong, 2013).
What is the major objective of the corporate governance study?
The major objective of the study is to examine the impact of good corporate governance on organizational performance. Other specific objectives are as follows: i. To explore the relationship between corporate governance and organizational performance.
Why is member participation in Co-operative Governance important?
Since member participation in co-operative governance is fundamental to the organization’s survival, it is necessary to review and synthesize studies from the last ten years in order to enhance our understanding of the components of member participation in co-operative governance.