The Impact of Corporate Governance on The Productivity of A Firm

ABSTRACT

The research looks into the relationship between corporate governance and organizational performance., through the processes of research multiple variables are  examined; the complex set of relationships between a Corporation and its board of directors, management, shareholders, stakeholders, customers, creditors and how effective Corporate Governance can improve the productivity of a firm.

Due to the nature of the research, the methodology used was focused on extensive interview, textbooks, journals and articles. Interview questions were focused on the variables that could affect the performance of a firm; textbooks, journals and articles were used as secondary data to have a past insight on how organizational performance affects a firm.

The research demonstrates that high governance risk correlates with lower performance, and robust governance is associated with more sustained performance. Companies with higher standards of governance were discovered to have higher performance). Further findings indicated that one of the more difficult things in assessing the influence of corporate governance upon firm performance is to take into account the impact of changes in the market: at times of rapid expansion many companies will perform well, in times of recession most companies will find it more difficult to perform.

Recommendations made focuses on improving the relationship between an organization, as a wholes and shareholders, stakeholders, management, creditors, and customers, through proper Corporate Governance. Once this is achieved to a certain degree, it will positively affect the level of performance of a firm, directly or indirectly.

TABLE OF CONTENT

1.    CHAPTER ONE – INTRODUCTION

1.1 Background of the Study……………………………………………………..1        

1.2 Statement of the Problem……………………………………………………..............4

1.3 Objective of the Study……………………………………………………..5

1.4 Significance of the Study……………………………………………………..6

1.5Scope of the Study           ……………………………………………………...6

1.6 Definition of Terms……………………………………………………………...7

1.7 Plan of Study……………………………………………………………...8

 2.   CHAPTER TWO – LITREATURE REVIEW

2.1An Overview of Corporate Governance ………………………………...........…...9

2.2Models of Corporate Governance……………………………….................16

2.3Mechanisms of Corporate Governance……………………………………..........40

2.4Governance Structure………………………………………………...................42

2.5Potential Role of Stakeholders in Corporate Governance  .................................49

2.6Board of Directors and Corporate Governance     …..........………………….....52

2.7Board Organization & Structure…………………………………………..............61

2.8Corporate Governance Systems in Different Countries………………...............75

2.9  Quality of Corporate Governance and Firm Performance   …………….........79

2.10 Corporate Social Responsibility…………………………………………..............80

2.11 Corporate Sustainability…………………………………………………..82

2.12 Corporate Governance in Nigeria             ............................................................83

2.13Benefits of Corporate Governance         ……………………………….................86

2.18 Summary............………………………………………………………………........88

3.      CHAPTER THREE – RESEARCH METHODOLOGY

3.1    Introduction     ......………………………………………………………….................90

3.2Research Methods       .....……………………………………………………….........90

3.3    Methods of Data Collection    …………………………………………….......99

3.4    Method of Data Analysis……………………………………………….................104

3.5   Justification of Method……………………………………………….....109

4.      CHAPTER FOUR – DATA PRESENTATION, ANALYSIS AND INTERPRETATION

 4.1     Introduction     ………………………………………………………………........110

4.2      Interpretation of Data……………………………………………………….......113

 4.3     Summary of Analysis………………………………………………………...................126

5.        CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION

5.1       Summary    …………………………………………………………………….........130

5.2      Conclusion      …………………………………………………………………...........133

5.3      Recommendation       ………………………………………………………….........137

Bibliography…………………………………………………………….............141