1.1 Background to the Study
A company may have a legal personality but it is not a human being that is capable of making decisions and plans about the business and exercising control over it to achieve its set objectives. People must undertake this management task. The most senior level of management of the company is the board of directors responsible for the management of the company.
In recent years, the issue of corporate governance has generated much debate. Management is concerned with running of business where the term corporate governance is used to describe the ways in companies are directed and controlled.
According to Asein (2001), corporate governance is not about day-to-day management of the enterprise, it involves the direction and control of those who have responsibility for the day-to-day running of the organization.
Corporate Governance is a system and structure, used in directing and managing business efficiency and affairs of corporations with the objectives of enhancing shareholders value which includes ensuring the financial viability of business.
The process and structure defines the division of power and established mechanism for achieving accountability, transparency and fairness among shareholders, board of directors and management.
The key element of good corporate governance principle includes, trust and integrity, openness (demands for information), performance orientation, responsibility and accountability, moral respect and commitment to the organization of importance is how director and management develop a model up governance that align the value of it corporate participants and then evaluate his model periodically for its effectiveness (corporate governance, Wikipedia, the free encyclopedia).
Corporate governance also involves a system of structuring, operating and control a company with a view to achieve long term strategic goals to satisfy shareholders, creditors, employees, customers and supplies and comply with legal regulatory requirement apart form meeting environmental and legal community needs.
1.2 Statement of Problems
In the study the following research questions are asked in order to achieved the objectives of the studies.
1. There are failures of companies as a result of poor existence of corporate governance.
2. Stakeholders in public limited liability company poorly remunerated as a result of nor existence of best practices.
3. Corporate governance can be used in directing and managing business efficiency.
1.3 Research Questions
1. What are the structure of corporate governance as regards for effective and efficiency management of corporation in Nigeria?
2 What brought about corporate governance, its principles and impact in corporate entities?
3 How does the process, customs, policies, laws and institution affect the way a corporation is directed, administered and controlled?
4 How can corporate scans and scandals (bankruptcies, fraud and mismanagement) be avoided in an organization?
1.4 Objectives of the Study
The objectives of the study are to examine the following:
a. To find out the structure of corporate governance as regards for effective and efficiency management of corporation in Nigeria.
b. To find out what brought about corporate governance, its principles and impact in corporate entities.
c. To find out how set process, customs, policies, laws and institution affect the way a corporation is directed, administered and controlled.
d. To find out how to avoid corporate scans and scandals (bankruptcies, fraud and mismanagement) in an organization.
1.5 Statement of Hypothesis
Ho: Corporate governance does not affect vital issues of business efficiency.
Hi: Corporate governance affects vital issues of business efficiency.
Ho: There is no relationship between strategic planning and corporate governance.
Hi: There is relationship between strategic planning and corporate governance.
Ho: The component of corporate governance is not essential in achieving public confidence in corporate entities.
Hi: The component of corporate governance is essential in achieving public confidence in corporate entities.
1.6 Significance of the Study
In regards to the relevance of the study, it covers areas which are useful to the board of directors as regards to their mission, vision, objectives and strategy of a company. It is relevance to shareholders by boosting their confidence to invest in a particular business which involves protecting their rights.
Companies will benefit as it ensures the financial viability of business. It also indicates the way in which companies are directed and controlled through basic governance principles of disclosure and accountability of a company. It is also relevant to the public sector. Public sector will benefit as it will ultimately improve economic growth and functional position of the country on a global level. It is also used as a determinant in developing policy, social economic analysis and poverty resolute issue.
1.7 Scope of the Study
This research, essentially focus on the corporate governance mechanism: a panacea for effective and efficient managing of corporations in Nigeria. The process and structure in which business efficiency and affairs of corporate are directed, manage and controlled. It also focus on the dilemma that result from the separation of ownership and control.
1.8 Limitations of the Study
The factors that militate against the researcher’s ability to come out with concrete findings during the course of researching includes:
a. Lack of necessary materials: The materials sought were not sufficient for the research as for text works and business journal needed were not gotten at the right time.
b. The problem of retrieving the questionnaire: Some questionnaires issued to respondents were lost during the attitudes of the respondents to disclose their personal information.
1.9 Definition of Terms
Management is a distinct process consisting of planning, organization, starring, directing, coordinating, reporting and budgeting, performed to determine and accomplished stated objectives with the effective use or human being and other resources.
Corporation is a big company or group of companies acting together as a single organization for a particular purpose with a legal entity distinct from its owners.
Strategic planning is the process of determining the major objectives of an organization and the policies and strategies that will govern the acquisition, use and deposition of reassures to achieve set objectives.
Planning is the establishment of objective and the formulation, evaluation and selection of policies strategies, factors and actions required to achieve set objectives.
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