Role of Corporate Governance in the Financial Crisis; Evidence from Nigerian Banks

Oyewole, S.O. and Olusanmi, O. and Owolabi, F. (2015) Role of Corporate Governance in the Financial Crisis; Evidence from Nigerian Banks. Journal of Accounting and Auditing: Research & Practice.

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Abstract

Accessing problems from the perceived causes usually leads to a relief or solution. This paper examines corporate governance and the Nigerian financial crisis which was majorly characterised by poor credit risk management, with the aim to determine the relationship that exists between corporate governance and credit risk management. Secondary data were gathered from 19 listed Nigerian banks for a 5 year period between 2005 and 2009; the postconsolidation to financial sector crash in Nigeria. Corporate governance is measured by statutory committee, committee independence, board size, board composition, executive duality and directors’ interest; while credit risk management is measured by non–performing loans ratio, loan loss provision, and loan to deposit ratio. The data were analysed by Ordinary least square panel data analysis. Findings revealed that banks with good corporate governance have better credit risk management. Results of the hypotheses tests revealed that there is a significant relationship between corporate governance and the credit risk management variables: non–performing loans ratio; loan loss provision; and loans to deposits ratio. This paper recommends that directors of banks should ensure compliance with corporate governance policies for a more thorough administration of the financial system

Item Type:	Article
Uncontrolled Keywords:	Corporate Governance; Financial Crisis; Credit Risk; Nigerian Banks
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mrs Patricia Nwokealisi
Date Deposited:	30 Aug 2017 15:29
Last Modified:	30 Aug 2017 15:29
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/9017

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