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CEOs Removal and Bailed Out Banks in Nigeria: Does Absence of Good Corporate Governance Practices Responsible?

Ikpefan, Ochei Ailemen and Iyoha, F. O. and Ojeka, Stephen (2014) CEOs Removal and Bailed Out Banks in Nigeria: Does Absence of Good Corporate Governance Practices Responsible? Journal of Economics and Finance, 2 (4). pp. 418-430. ISSN 2310-0184 (print) 2310-4929 (online)

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Abstract

The recent financial crisis in the Nigerian banking sector which has been adduced to the abuse of corporate governance practices have been identified as one of the factors that led to the removal of some CEOs. Therefore, this study examined the impact of corporate governance on the financial performance of bailed-out banks in Nigeria. The corporate governance variables include: board size, CEO duality, non-executive directors in audit committee, percentage of women on the board and board independence while return on assets was used to measure financial performance. Data were collected from the annual reports of the six bailed-out banks in Nigeria from 2003 - 2009. The data were analysed using the Ordinary Least Square (OLS). The results showed that there was no significant positive relationship between audit committee, board size, board independence and return on assets. It was also established that though the removal of the CEOs could have a political undertone (outside the scope of this study), the CEOs and the management of the affected banks flagrantly flayed some provisions in the SEC Code, especially in terms of compositions. It is, therefore, recommended that banks should be made to adhere strictly to the existing code of corporate governance for the provisions (especially in terms of composition) to have a maximum and significant impact on the firm financial performance.

Item Type: Article
Uncontrolled Keywords: Corporate governance Characteristics, Financial Performance, CEOs, Banks, Nigeria
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 22 Sep 2016 15:44
Last Modified: 18 Jul 2017 12:05
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/7252

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