Corporate Governance and Stakeholders Interest: A Case of Nigerian Banks

Awotundun D A,Somoye R.O.C,Kehinde J S

doi:10.5539/ijbm.v6n10p102

Abstract

The paper investigates the theory of corporate governance and stakeholders interest. It discusses corporate governance theory that has emerged. The study was strengthened by the principles and pillars of corporate governance stresses by OECD. The methodology was based on stakeholders model and value added approach was used. Annual return of ten selected banks for period of ten years were utilized. Finding revealed that corporate governance has not been effective in most Nigerian banks. Shareholders had not been fairly treated. The corporate insiders had capture the corporate outsiders, shareholders as the principal stakeholders had been sidelined as evidence by huge amount retained devoted for the future. The paper recommended pragimatic approach and political will to implement principles of corporate governance to ensure fair treatment of stakeholders.

Highlights

It is incontrovertible that, corporation has become a powerful and dominant institution which has extended to every corner of the globe in various sizes, capabilities and influences
The paper investigates the theory of corporate governance and stakeholders interest
The purpose of this research is to examine corporate governance and the stakeholders interest with special reference to the banking sector

Summary

Introduction

Corporation has become a powerful and dominant institution which has extended to every corner of the globe in various sizes, capabilities and influences. Their Governance has tremendously influenced on the economies as well as various aspect of social landscape. The organization of economic cooperation and development (OECD 1999 and 2004) defined, corporate governance as a set of relationships between a business’s management and its board of directors, its shareholders and lenders, and other stakeholders such as employees, customers, suppliers, and the community of which it is a part.

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Discussion

Conclusion