Corporate governance disclosure and corporate performance of Nigerian banks

Abstract

Corporate disclosure is a key mechanism of corporate governance. This study examined the effect of corporate governance disclosure (CGD) on the financial performance of commercial banks listed on the Nigeria Stock Exchange. Based on the provisions of the Code of Corporate Governance for Public Companies in Nigeria, 2011 and the Code of Corporate Governance for Banks and Discount Houses 2014, the study developed a disclosure checklist and employed content analysis technique to extract corporate governance (CG) from 78 annual reports of 13 Nigerian commercial banks from 2011 to 2016. The study trichotomized CGD into those relating to the board of directors, risk framework, and whistleblowing policy. The results of the hypothesized relationships showed a positive and significant association between CGD and the banks' financial performance, with a positive effect of CGD on the board of directors and whistleblowing policy. However, the study did not find a significant association between CGD of risk management framework and the banks' financial performance. This study contributes to the body of knowledge by providing a broader understanding of the effect of CGD on banks' financial performance. The development of a disclosure checklist based on the regulators’ codes of corporate governance is a useful addition to the literature.

Effects of Corporate Governance Disclosure on Profitability of Public Listed Firms in Tanzania

“…Source; author analysis CGI disclosure had a positive and statistically significant effect on ROA in all two estimations as seen in Table 3. These findings are similar to those of (Panchasara & Bharadia, 2013) and (Herbert & Agwor, 2021) who also concluded that corporate governance disclosure positively affected ROA of firms they studied. The results contradicts those of (Harisa et al, 2019) and (Lishenga & Mbaka, 2008) who failed to establish any significant effect of CGI disclosure on ROA.…”

“…Study done by (Adefemi et al, 2018) also failed to establish any significant effect of CGI disclosure on profitability of Nigerian firms. Herbert & Agwor (2021) determined that the https://www.ilomata.org/index.php/ijtc corporate governance disclosure of board of directors by Nigerian banks had a considerable positive effect on ROA, but it had no meaningful effect on ROE.…”

Effects of corporate governance disclosure on profitability of public listed firms in Tanzania

“…A study done by Adefemi et al 2018) also failed to establish any significant effect of CGI disclosure on the profitability of Nigerian firms. Herbert & Agwor (2021) determined that Nigerian banks' corporate governance disclosure of the board of directors had a considerable positive effect on ROA. Still, it had no meaningful effect on ROE.…”

Corporate Governance and Corporate Financial Failures: Evidence From Pakistan Stock Exchange (PSX)

“…The undergoing agency problems due to poor governance also hints at the necessity of accountability and the role of an appropriate audit committee that becomes vital in safeguarding owners' interests. The literature suggests that an appropriate audit committee should include independent directors (Herbert & Agwor, 2021;Ahmad et al, 2013). There must be three-member of the audit committee.…”

“…Although many scholars concluded that the connection between inside directors' existence and an organization's performance is not undisputed. According to resource dependency theory, it is expected that board size with many links to external surroundings is probable to progress an organizations' success to numerous resources, which result in enhanced corporate governance and organization performance (Bhatt & Bhattacharya, 2015;Chen, Dyball, & Wright, 2009;Herbert & Agwor, 2021;Jackling & Johl, 2009).…”