25 Pages Posted: 14 Mar 2010
Date Written: January 28, 2010
Board effectiveness is particularly important in the Nigerian banking industry because a number of financial failures, frauds, and questionable business practices had adversely affected investors’ confidence.
This study evaluated corporate governance in Nigerian banks with regards to board performance, culture and diversity, and impact on board effectiveness. It also attempted to identify key determinants of effective boards.
The empirical findings reveal that boards of banks operating in Nigeria embark on regular evaluation of their activities as a means of improving their performance.
From the directors’ perspective, the most important determinant of effective boards in the Nigerian banking industry is directors’ competence. Other major determinants include board diversity, compliance with corporate governance code and relevant laws/regulations, board independence, and degree of openness in board processes.
This paper draws a number of conclusions and recommendations and also highlights some limitations that can be improved upon in future studies.
Keywords: Corporate Governance, Banks, Board Processes, Board Culture, Board Appraisal, Board Relationships, Board Strategic Role, Board Functions and Performance
Suggested Citation: Suggested Citation
Ogbechie, Chris and Koufopoulos, Dimitrios N., Board Effectiveness in the Nigerian Banking Industry (January 28, 2010). Available at SSRN: https://ssrn.com/abstract=1543811 or http://dx.doi.org/10.2139/ssrn.1543811
By Morten Huse