Table of Contents
Abstract. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study.. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study.. 8
1.4 Research Questions. 8
1.5 Research Hypothesis. 9
1.6 Significance of the Study.. 9
1.7 Scope of the Study.. 10
1.8 Limitations of the Study.. 10
1.9 Organization of the Study.. 10
CHAPTER TWO.. 13
REVIEW OF RELATED LITERATURE.. 13
2.1 Introduction.. 13
2.2 Theoretical Review.. 13
2.3 Conceptual Review.. 16
2.3.1 Overview.. 16
2.4 Empirical Review.. 19
2.5 Summary of Literature Review.. 21
Chapter Three.. 22
Research Methodology.. 22
3.1 Research Design.. 22
3.2 Population of the Study.. 22
3.3 Sample Size and Sampling Technique.. 23
3.4 Data Collection Methods. 23
3.5 Research Instruments. 24
3.6 Validity and Reliability of Research Instruments. 24
3.7 Data Analysis Techniques. 25
3.8 Ethical Considerations. 25
3.9 Limitations of the Study.. 25
3.10 Conclusion.. 26
CHAPTER FOUR.. 27
DATA ANALYSIS AND INTERPRETATION.. 27
4.1 Preamble.. 27
4.2 Socio-Demographic Characteristics of Respondents. 27
TABLES BASED ON RESEARCH QUESTIONS.. 32
4.3 Analysis of the Respondents’ Views on Research Question one:. 32
CHAPTER FIVE.. 48
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 48
5.1 Summary.. 48
5.2 Conclusion.. 49
5.3 Recommendations. 50
REFERENCES.. 52
QUESTIONNAIRE.. 54
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The role of banks in corporate governance and corporate finance plays a pivotal role in shaping the economic landscape of Nigeria. As one of the largest economies in Africa, Nigeria relies heavily on a robust and well-functioning banking sector to facilitate corporate activities and ensure financial stability. Banks in Nigeria serve as crucial intermediaries between corporate entities and the capital markets, playing a pivotal role in the allocation of resources, risk management, and fostering transparency in corporate governance. Akintoye, I. R., & Olowookere, J. K. (2017).
In the realm of corporate governance, Nigerian banks act as stewards of shareholder interests by participating in the governance structures of the companies they finance. Through their involvement in board meetings, voting on key decisions, and conducting due diligence, banks contribute to the establishment and maintenance of sound corporate governance practices. This involvement is essential for maintaining trust and accountability, which are integral elements of a healthy corporate environment. Adofu, I., Ibrahim, M., & Sanni, M. (2016).
Furthermore, banks in Nigeria play a pivotal role in corporate finance by providing essential financial services such as loans, capital raising, and advisory services to corporations. The ability of companies to access funds from banks is critical for their expansion, research and development, and overall growth. This financial support is instrumental in bolstering the Nigerian economy by fostering entrepreneurship, creating job opportunities, and promoting innovation. Aburime, T. U., & Ikpefan, O. A. (2018).
In examining the role of banks in corporate governance and corporate finance in Nigeria, it is crucial to consider the regulatory environment and policy frameworks that shape their operations. The Central Bank of Nigeria (CBN) and other regulatory bodies play a significant role in overseeing the banking sector, ensuring that banks adhere to ethical standards and maintain financial stability. Research studies on this topic often explore the regulatory landscape, the impact of banking practices on corporate governance, and the effectiveness of existing policies in promoting a healthy financial ecosystem. Ogunleye, E. K., & Nwankwo, S. (2019).Top of Form
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1.2 Statement of the Problem
The intersection of banks with corporate governance and corporate finance in Nigeria presents a multifaceted set of challenges that warrant scholarly attention. One pressing issue revolves around the efficacy of existing corporate governance mechanisms within the banking sector. While Nigerian banks actively participate in corporate governance structures, questions persist regarding the extent of their influence on key decision-making processes and the actual impact on the transparency and accountability of corporate entities. The intricate relationships between banks and the corporations they finance raise concerns about potential conflicts of interest, ethical dilemmas, and the overall effectiveness of governance frameworks in safeguarding shareholder interests. . Akintoye, I. R., & Olowookere, J. K. (2017).
Another critical problem lies in the realm of corporate finance, where the accessibility of funds from banks significantly influences the growth and sustainability of businesses in Nigeria. The uneven distribution of financial resources and the potential impact on smaller enterprises pose challenges to fostering an inclusive and dynamic business environment. Additionally, the stability of the financial sector, as overseen by regulatory bodies such as the Central Bank of Nigeria, is crucial in ensuring that banking practices align with ethical standards and contribute positively to the overall economic health of the nation. Understanding the intricacies of these issues is imperative for policymakers, regulatory bodies, and industry stakeholders seeking to enhance the synergy between banks, corporate governance, and corporate finance in Nigeria. Adofu, I., Ibrahim, M., & Sanni, M. (2016).Top of Form
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1.3 Objectives of the Study
The main objective of the study is to examine the role of banks in corporate governance and corporate finance in Nigeria. Specific objectives of the study are:
- 1. To analyze the impact of bank ownership structure on corporate governance practices in Nigerian companies.
- 2. To evaluate the effectiveness of bank lending policies in facilitating and influencing corporate growth and financial stability in Nigeria.
- To examine the regulatory framework and its influence on the interaction between banks, corporations, and the wider financial system in Nigeria.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- How does the concentration of ownership in banks by individuals or families influence the appointment and oversight of boards of directors in Nigerian companies?
- How do lending criteria and risk management practices employed by Nigerian banks impact the availability and accessibility of credit for different types of businesses, particularly small and medium-sized enterprises (SMEs)?
- How effective are the Central Bank of Nigeria (CBN) and other regulatory bodies in enforcing good governance principles and mitigating systemic risks within the Nigerian banking sector?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between banks in corporate governance and corporate finance in Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to GTCO. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
