Assessment of Corporate Governance Practice among Listed Conglomerate Companies in Nigeria

International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue IX, September 2020 | ISSN 2321–2705

 Assessment of Corporate Governance Practice among Listed Conglomerate Companies in Nigeria

Ahmed Ishaku ACA¹, Mubarakatu Garba² & Farida Musa^3
1,2,3 Department of Accounting Gombe State University 

Abstract: This study examines the level of compliance with 2011 SEC code of corporate governance among listed conglomerate companies in Nigeria. Expost-facto research design was used, a corporate governance compliance index was employed and data was extracted from annual report and account of the companies. It was found that corporate governance initiatives are embedded on the boards of listed conglomerate companies in Nigeria and that there is high compliance with SEC code of corporate governance in the listed conglomerate companies in Nigeria. Modern corporation plays a major role in the economic development of any nation, hence the need to ensure good governance of these corporations cannot be overemphasized. Therefore, to avoid the incidence of corporate failure in the listed conglomerate companies in Nigeria, this study recommends 100% compliance with the SEC code of CG in Nigeria. This will go in length to ensure the future survival of these companies.

Keywords: Assessment, Corporate Governance and Conglomerate Companies

I. INTRODUCTION

Background of the Study

The main objective of corporate organizations is to maximize shareholders’ wealth therefore the needs to protect the interests of other stakeholders, improve corporate performance and accountability cannot be underestimated; hence corporate governance harmonizes the need to strike a balance at all times between the need to enhance shareholders’ wealth and the need to protect the interests of other stakeholders. Further, its objective is to have an environment of trust and confidence amongst those having competing and conflicting interests.

Moreover, financial scandals around the world and the collapse of major companies in the world have brought the need for good corporate governance. A related discussion focuses on the impact of corporate governance on economic efficiency with a strong emphasis on shareholders’ welfare. It is also essential for the issuers of securities they invest in, to adhere to good corporate practices which enable the company to attract financial and human capital, perform operations efficiently and perpetuate itself by generating long term economics value for its shareholders while respecting the interest of all stakeholders’ and the society at large.

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