Eliminating Performance Gaps through Corporate Governance for Sustainable Management of Selected Manufacturing Companies in Calabar, Cross River State, Nigeria

Abstract

The study on eliminating performance gaps through corporate governance for sustainable management was conducted in selected manufacturing companies in Cross River State. The study examined transparency in financial disclosure and accountability in managerial ownership as measures for sustainable management in a dynamic business environment. Two research questions and hypotheses were respectively formulated and agency theory was developed to guide the study. Survey research design was adopted and with a population of 240, a sample size of 152 staff determined with the use of Taro Yamane sampling formula. Stratified sampling method and Bowley’s proportional allocation formular was adopted with the aim of preventing bias in representation. A 21-item structured questionnaire facilitated the collection of data and a pilot study was carried out to determine potential weakness in the research instrument. The instrument was developed, validated and tested for reliability using test-retest method. Data were analyzed using Data and simple percentage andhistogram to show Normality while regression analysis was used to test the hypotheses using SPSS. Finding shows that corporate governance implementation requires transparent financial disclosure to eliminate performance gaps and improve internal efficiency of the organizations. Priority on transparent financial information is addressed by corporate governance and this prevents fraud or irregularities in accounting for improved financial disclosures. The implication of the finding was the rejection of null hypotheses. The study concludes that performance gaps are eliminated by corporate governance principles which aid in realization of stakeholders’ expectation. The study recommends among others that management of the studied organizations should continuously eliminate performance gaps through compliance with International Financial Standards for good practices in corporate governance. Manager’s activities should be continuously monitored by board of directors in order to eliminate performance gaps.