The Impact of Corporate Governance Chief Executive Officer (CEO) Succession Plan on Banks Financial Performance in Nigeria
Author(s)
Osho Augustine E , Afolabi, Matthew B ,
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Abstract
This paper examines the impact of corporate governance Chief Executive Officer (CEO) succession plan on banks financial performance in Nigeria. The increased incidence of bank failure in the recent period generated the current literature on quality of bank assets and also emphasized good governance as means of achieving banks objectives. This study made use of secondary data obtained from the financial reports of nine (19) banks for a period of ten (10) years (2006- 2016). Data were analyzed using multiple regression analysis. Findings revealed that Succession planning in the shadow of a long-term CEO contract is confounded not just by the prospect of losing some of the best possible candidates, but also by reaffirming the importance of the CEO in choosing a successor. It is recommended that bank boards should formulate succession plans to assure that the banks operate smoothly and also be aware of the benefits of having independent directors on the board.
Keywords
Agency theory, Chief Executive Officer (CEO), Corporate Governance, Financial Performance, Stakeholders theory, Succession Plan
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