Assessment of Corporate Governance on Earnings per Share of Selected Deposit Money Banks in Nigeria

Author(s)

Akinlabi, Babatunde H , Owolabi, Sunday A , Cole, Abimbola Ayodeji ,

Download Full PDF Pages: 88-95 | Views: 707 | Downloads: 213 | DOI: 10.5281/zenodo.4922378

Volume 9 - March 2020 (03)

Abstract

The study assessed the relationship between corporate governance and earnings per share of selected deposit money banks in Nigeria from 2006 to 2018.Ex post facto research design was adopted for this study using secondary data obtained from published annual reports, returns of selected deposit money banks, statistical bulletin of the central Bank of Nigeria and data obtained from the National Bureau of Statistics. Data obtained were analysed using Regression analysis with the aid of SPSS and E-view.Results obtained showed that corporate governance represented by board independence (BI), organizational orientation (OO), risk management structure (RMS), ownership structure (OS), transparency and disclosure (TD) have a positive relationship with earnings per share (EPS) on listed deposit money banks (DMBs) in Nigeria.

Keywords

Corporate governance, Earnings per share, Financial Performance

References

               i.            Ajala, O. A., Amuda, T & Arologun, I. (2012). Evaluating the effect of corporate governance on the performance of Nigerian Banking Sector. Review of Contemporary Business Research 1(1), 32-42.

             ii.            Allen, F., Santomero, A.M., (1997).The theory of financial intermediation.Journal of Banking and Finance 21, 1461-1485,

           iii.            Alshetwi, M. (2017). The association between board size, independence and frim performance; Evidence from Saudi Arabia. Global Journal of Management and Business Research Accounting and Auditing 17(1), 16-28.

            iv.            Ayodeji A & Okunade, R. A (2019) Baord Independence and financial performance of deposit money banks in Nigeria and Canada. Asia Journal of Economics, Business and Accounting 11(3), 1-9.

              v.            Bansal, C.L. (2005).Corporate governance – law practice and procedures with case studies. New Delhi: Taxmann Allied Service, 163-187.

            vi.            Barba, C. L. (2005) corporate governance- Low practice and procedures with Case studies. New Delhi: Tax man Allied Services 163-187.

          vii.            Basmah, & Lakshmi, (2016). Is “Excess” Board independence good for firm’s performance? An empirical investigation of non-financial listed firms in Saudi Arabia. International Journal of financial Research. 7(2), 84-92.

        viii.            Benjamin, F. (2014). The demand and need for transparency and disclosure in corporate governance Universal. Journal of Management 2(2), 72-80.

            ix.            Berle, A. A., & Means, A. (1932).The Modern Corporation and Private Property. USA: Transaction publishers.

              x.            Cadbury, S. A. (1992) Report of the committee on the financial aspects of corporate governance. Gee Ltd (Professional Publishing Ltd.), London.

            xi.            Chirantan, B (2018) what can firms Do to Influence shareholders’ Interests? Hearst Newspaper LLC.

          xii.            Clifford, & Evans, (1997). Non-executive directors: A question of independence. Corporate Governance. An International Review. 5(4) 224-231

        xiii.  Diamond, D. W. (1984). Financial intermediation and delegated monitoring, Review of Economic Studies, 5(1), 393-414.

        xiv.            Dzingai, I. & Fakya, M. B. (2017). Effect of corporate governance structures on the financial performance of Johannesburg Stock Exchange (JSE). Listed mining firms, MDPI Africa Centre for Sustainability accounting and management 9(1), 867-882.

          xv.            EL-Mir, A. & Seboui, S. (2008) corporate governance and the relationship between EVA and created shareholder value. International Journal of Business in Society, 8(1), 46-58

        xvi.            Fama, E., Jensen, M. (1983) Separation of Ownership and Control.Journal of Law and Economics 26, 301.

      xvii.            Freeman E (1984). Strategic management: A Stakeholder Approach. Boston: Pitman Press.

    xviii.            Freeman, R.E., Wicks, A. C. & Parmar, B.; (2004). Stakeholder Theory and the Corporate .

        xix.            Fuzi, S, F., Adliana, S, A., & Julizaerma, M, K. (2016).Board independence and firm performance. Procedia Economics and Finance, 37(1), 460 – 465.

          xx.            Ghabayen, M. A. (2012) Board Characteristics and firm performance: cas9e of Sandi Arabia. International Journal of Accounting and financial Reporting 2(2), 168-200

        xxi.            Gurley, J.G., & Shaw, E.S., (1960).Money in a theory of finance. Brookings Institution.

      xxii.            Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.

    xxiii.            Kamazima, B. K., Mathenge, P., & Ngui, T. (2017). Influence of corporate governance structure on financial performance. A case of listed commercial banks in Kenya. Journal of Education and Entrepreneurship, 4(10), 60-82.

     xxiv.            Keay, A. (2017). Stewardship theory. Is Board Accountability Necessary? International Journal of Law and Management 59(6), 1292-1314

       xxv.            Kirkpatrick, G. (2009). The corporate governance lesson from the financial crisis. OECD financial market Tends Report.

     xxvi.            Mansur, H & Tangl, A. (2018). The effect of corporate governance on the financial performance of listed companies in Haman Stock Exchange (Jordan). Journal of Advanced Management Science 6(2), 97-102.

   xxvii.            Mariana, B., & Valentino, L. (2018).The big bank theory.into the bank corporate governance literatureuniversity of Rome I - Dipartimento Banche Assicurazioni Mercati, Sapienza University.

 xxviii.            Matteo, R., Marco, N. & Arturo, C. (2015). Corporate Governance and Financial                                 performance of Italian Listed Firms. The Results of an Empirical Research.

     xxix.            Mohamed S, Ahmad, K; Khai K (2016). Corporate governance practices and firm performance: evidence from top 100 public listed companies in Malaysia. Procedia Econ. Finance, 35 (2016), 287-296

       xxx.            Mwanzia, M., & Ochanda, J. O. (2017).Effect of corporate governance on the financial stability of the banking industry in Kenya. The Strategic Journal of Business and Change Management, 4(4), 367-384. Nasday.com. 2017. US Daily Stock Market Overview

     xxxi.            Organisation for Economic Co-operation and Development (OECD) (2009). Annual report.

   xxxii.            Organisation for Economic Co-operation and Development OECD (2019) Rethink policy for changing world! Economic outlook.

 xxxiii.            Objective Revisited. Organization Science 15(3):364-369.

 xxxiv.            Richmond, V. P., & McCroskey, J. C. (2001).Organizational communication for survival: Making work, work. Boston: Allyn & Bacon.

   xxxv.            Roberts, J, McNutty, T. & Stiles, P (2005) beyond agency conceptions of the work of the non-executive director: creating accountability in the boardroom. British Journal of Management, 16(1), 5-26.

 xxxvi.            Rosenstein, S.,& Jeffrey, G. W. (1997).Inside directors, board effectiveness, and shareholder wealth.Journal of Financial Economics, 44(2), 229-250.

xxxvii.            Sarbanes- Oxley Act (2002). United States of America’s Corporate Responsibility Act of 2002.

xxxviii.            Sharukh, T., & Sorab, S. (2015).Corporate governance and risk management: An Indian perspective. International Journal of Management Science and Business Administration, 1(9), 33-39.

 xxxix.            Stewardship Code (2010). UK Corporate Governance Code

            xl.            Wheeler D, Colbert B & Freeman R.E. (2003). Focusing on value: Reconciling corporate social responsibility, sustainability and a stakeholder approach in a network world. Journal of General Management. 28 No. 3 Spring.

          xli.            Taghizadeh, M & Saremi, S. (2013). Board of directors and firms performance, evidence from Malaysian public listed firm. Int. Proc. Econ. Develop. Res. 5(37), 178-182.

        xlii.            Tosi, H. L, Brownlee, A. L. Silva, P & Katz, A. (2003). An empirical exploration of decision- making under agency control and stewardship structure Journal of Management Studies 15(3), 38-56.

      xliii.            Taghizadeh, M & Saremi, S. (2013). Board of directors and firms performance, evidence from Malaysian public listed firm. Int. Proc. Econ. Develop. Res. 5(37), 178-182.

      xliv.            Uadiale, O. M. (2010). The impact of board structure on corporate finance performance in Nigeria. International Journal of Business Management. 5(10) 155-166.

Cite this Article: