Shareholders perception on corporate governance implementation in Nigerian commercial banks

The global economic meltdown of 2007/2008 which resulted in the collapse of many multimillion companies and recessions in both developed and developing economies, reinvigorated individual concerns on the need for accountability, disclosure, transparency in organisations and effective corporate governance implementation. The board of directors were charged with the role of controlling, monitoring and strategic planning in organisations. Consequently, this raised key concerns for board effectiveness to ensure corporate governance implementation and firm performance.Therefore, this thesis examined the prevailing corporate governance challenges in Nigerian banks, the consequences of such challenges and ways to ensure proper corporate governance principles implementation. Most previous studies on corporate governance and board effectiveness, only independently examined the board characteristics without consulting the principal (shareholders) and agents (management) on the challenges that hampers board effectiveness. Though some corporate organisations complied to the requirements of corporate governance principles; they were still overwhelmed by scandals that led to company collapse. This thesis is not only examining board effectiveness in implementing corporate governance, but also, ascertaining the prevailing environmental challenges that might hamper corporate governance effectiveness in Nigerian commercial banks.In addition, this thesis developed a framework — based on previous research works — on board effectiveness in developed and emerging economies. The framework examined the relationship between board characteristics and effective corporate governance implementation. The board characteristics examined in the framework includes board diversity, size, committees, leadership duality and board composition of executive and non-executive directors. It further examined prevailing factors that undermines effective implementation of corporate governance principles.The thesis adopted qualitative method of data collection by conducting semi-structured interviews which created opportunity for an in-depth and detailed opinion and sentiments of the players and observers in the Nigerian commercial banks on challenges, effects, and possible solution to corporate governance implantation.The findings show that factors like corruption, unethical practices, ownership structure, multiple board representation, lack of diversity and transparency as challenges facing effective corporate governance implementation and board effectiveness. The above-mentioned challenges, if not addressed, will not only undermine corporate governance implementation but company performance. Moreover, the findings indicate that diversity should go beyond gender inclusion and consider diversity based on skills, experience, and knowledge. The findings acknowledge the importance of diversity base on gender; however, competence should be prioritized. Furthermore, the findings identified the need for regular board training and seminars, adequate remuneration based on performance and favourable government policies through governmental institutions like the Central Banks.This thesis contributes an instant and long-term solution in ensuring board effectiveness which will result to effective corporate governance implementation and company performance. The instant policy includes immediate review of the remuneration policy by organisations. On the other hand, the review of corporate governance codes by regulatory bodies by enacting codes that serve as a check on the board, and constant training of the board to be abreast with contemporary corporate governance practices and prevailing issues that might undermine their effectiveness. The framework and findings of this study will invigorate researchers in identifying other issues that might undermine board effectiveness and corporate governance implementation and comparative study on impact of ownership structure (disperse and concentrated) on corporate board effectiveness.