What Drives Compliance with Corporate Governance Principles: Inference from Public Institutions in Nigeria

Abstract

This study assessed the compliance of public institutions with corporate governance processes in Nigeria. The survey research design was employed in the study. Primary data was collected through the administration of a semi-structured questionnaire to the Finance and Accounts, Internal Audit and senior level management staff. The main instrument for the collection was a structured questionnaire which was subjected to validity and reliability test. Data analysis involves the use of descriptive and inferential statistics. Findings from the study revealed that one third (33.33%) approved politics had great effect on corporate governance. While two in five (41.67%) stated it had moderate effect. Very negligible number (2%) believed politics didn’t have any effect in their organizational setting. Community related factors were also considered as one of the major drivers of corporate governance. One in five (22%) believed community factor like traditional institution had great effect on corporate governance in their organization. This is followed by the onethird (33.33%) who admitted it had a moderate effect. Also, majority (45%) agreed religion and cultural factor moderately influenced corporate governance. While three in ten confirmed it only had a low effect. In relation to constitutional factors, well above average and majority (55%) stated it had moderate effect on corporate governance. It shows that qualification of accountants and internal auditors had great effect on corporate governance with the majority (87%) confirming this. Similarly, the level of exposure or experience of accountant and internal auditors was said to be of great impact by the majority (77%) of the respondents. While the same goes for the effect that qualification of other management staff had on organizatonal corporate governance where majority (45%) claimed it had a great effect. The study concludes that the current compliance of public institutions with corporate governance processes in Nigeria should be sustained for enhance financial service delivery in Nigeria public organizations