Effective board management and good corporate performance in nigerian public liability companies

Abstract

The need for effective board management and good corporate performance lies at the heart of good corporate governance theory because as the agency theory contends the managers’ interest and the interest of shareholders are not almost always the same. Good corporate performance is the basis of the business as reflected through enhanced shareholder value measured by return on investment, return on assets or return on equity. Effective board management necessary for good corporate performance requires significant dose of emotional intelligence competencies such as integrity, transparency and loyalty. Such will ensure that the board of directors exercises internal control through effective monitoring roles aimed at protecting shareholders’ interest as contemplated by the principles of good corporate governance. Ninety seven individuals participated in the study conducted through the exploratory research design. Data were analyzed through descriptive and regression statistical techniques and it was found that effective board management has significant positive correlation with good corporate performance. There is need for more understanding in this area, therefore further study could examine the relationship between corporate fraud and incessant bank failures in Nigeria despite various regulatory interventions. Consequent on the result of this study, it was suggested that the appointment of members of the board of directors of public liability companies in Nigeria must not be done without consideration to relevant experience.