CORPORATE GOVERNANCE AND ORGANISATIONAL PERFORMANCE: A STUDY OF THE FIRST BANK NIGERIA PLC

P. O. OLAYIWOLA; O. OLUGASA; S. O. KAJOLA; O. M. AKINMADE

P. O. OLAYIWOLA 1Department of Accounting and Business Administration, Distance Learning Institute University of Lagos, Akoka, Yaba, Lagos.
O. OLUGASA 2The School of Law and Security Studies, Babcock University, Iperu-Remo Campus, Ogun State
S. O. KAJOLA Department of Accounting, The Federal University of Agriculture, Abeokuta, Nigeria.
O. M. AKINMADE The West African Examination Council, Ogba, Lagos. Nigeria

Keywords: Corporate Governance, Ethical Standards, Risk Management, Legal Framework, Organizational Performance

Abstract

As a remedy to the seemingly unending dysfunction in the administration of organisations in various jurisdictions across the world in the face of regulatory provisions and enforcement mechanisms, there has emerged another paradigm for the management of corporate bodies known as codes of corporate governance. Nigeria is not left out in the implementation of the codes for best practices in its corporate entities, especially the banking sector. This paper investigated how selected corporate governance variables (legal framework, Ethical dimensions, and risk management dimensions) predict the organisational performance of First Bank of Nigeria Plc. A survey design was used for the study, while convenience sampling was used to select 135 employees of the bank to seek their perceptions on critical issues of corporate governance. The result shows that corporate governance variables significantly predict organisational performance (F =24.53, p =.001). It recommends that relevant regulatory authorities should stress as applicable the importance of the provisions of the relevant statutes for all financial institutions and enforce strict adherence with a corresponding penalty for defaulters.