CORPORATE GOVERNANCE AND ITS IMPACT ON THE MANAGEMENT OF AN ORGANIZATION


CORPORATE GOVERNANCE AND ITS IMPACT ON THE MANAGEMENT OF AN ORGANIZATION  

ABSTRACT

This study examined the corporate governance and its impact on the management of AIRTEL Mobile Communication Nigeria Limited Kaduna main branch. Research questions guided the study. A survey method was used for this study. The population consisted of all the management staff of AIRTEL Mobile Communication Plc Kaduna with a total population of twenty five (25) persons. The entire 25 person were selected for the study. A questionnaire developed by the researcher based on liker 5 point scale was used for the study.  Mean scores and frequencies were used to analyze the data based on the research questions. Research results shows that internal and external mechanism of corporate governance are used to regulate the performance of AIRTEL. The control mechanism put in place by AIRTEL include internal and external auditing as well as board of director monitoring and balance of power. The systemic problems militating against corporate governance include high cost of monitoring, inadequate supply of accounting information to shareholders.

TABLE OF CONTENTS

Title page i

Declaration ii

Approval Page iii

Dedication iv

Acknowledgment v

Abstract vi

Table of Contents vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 3

1.3 Objective of the Study 4

1.4 Significance of the Study 5

1.5 Research Questions 5

1.6 Scope of the Study 6

1.7 Definition of Terms 6

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction 8

2.1 The Concept of Corporate Governance 8

2.2 Principles of Corporate Governance 10

2.3 The Impact of Corporate Governance on the Performance of Corporate Organizations 12

2.4 Internal and External Corporate governance control mechanism 15

2.5 The Systemic Problems of Corporate Governance 18

2.6 Corporate Governance Models around the World 19

2.7 Regulation in Corporate Governance 22

2.8 Parties to Corporate Governance 25

2.9 Summary of the Literature Review 31

CHAPTER THREE: METHODOLOGY

3.1 Introduction 32

3.2 Research Design 32

3.3 Area of Study 32

3.4 Population of the Study 32

3.5 Sample Size and Sampling Technique 33

3.6 Instrument of Data Collection 33

3.7 Validation of the Instrument 33

3.8 Reliability of Instrument 34

3.9 Method of Data Collection 34

3.10 Method of Data Analysis 34

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Introduction 36

4.2 Characteristics of Respondents 36

4.3 Data Analysis 37

4.4 Summary of Findings 43

4.5 Discussion of Findings 44

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction 46

5.1 Summary 46

5.2 Conclusion 47

5.3 Recommendations 48

References 50

Appendix 52

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Corporate Governance is a number of process, customers, policies, laws and institutions which impacts on the way a company is controlled. An important theme of corporate governance is the nature and extent of accountability of people in the business and mechanisms that try to decrease the principal agent problem (Wikipedia, 2011).

Corporate Governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade creditors, suppliers, customer and communities affected by the corporation’s activities. Informal stakeholders are the board of directors, executives and other employees. It guarantees that an enterprise is directed and controlled in a responsible, professional, and transparent manner with the purpose of safeguarding its long-tem success it is intended to increase the confidence of shareholders and capital market investors.

The World Bank (2009) states that corporate governance comprises two mechanisms, internal and external corporate governance. Internal corporate governance, giving priority to shareholder’s interest, operated on the board of directors to monitor top management. On the other hand, external corporate governance monitors and controls manager’s behaviors by means of external regulations and force, in which many parties, such as suppliers, debtors (stakeholders), accountants, lawyers, and providers of credit and investment bank.

In the past, so many corporate organizations have been caught of getting involved in unethical practices, for example the discovery of financial scam by the Central Bank of Nigeria after the consolidation exercise, involving seven top bank executives in Nigeria, which puts the credibility of their corporate image under suspicion, which further shocking investors confidence. Consequently, corporate governance mechanism has been a crucial issue discussed again.

It is against this background that the researcher sees the subject matter; corporate governance and its impact on the management of AIRTEL Mobile Communication Limited, Kaduna main branch as an issue worthy of being investigated.

1.2 Statement of Problem

In the past, so many organizations in Nigeria have been involved in unethical practices, which put the credibility of their corporate image doubt. As such AIRTEL Mobile Communications just like other telecommunication company have been constraint with issues arising form customer’s complaint of high tariffs, exploitations of workers by using contract staff as against direct engagement of workers that would be remunerated according to their condition of service. Previous researches into the subject have brought to light the poor governance of so many companies with indebted accounts in Nigeria economy. Their accounting systems did not reflect the companies financial status. A typical example is the financial scam of Oceanic and Intercontinental Bank after the consolidation. Most management of such outfits were not accountable to stakeholders of the companies. Besides, the counts and the regulatory agencies were short of authority, corruption and kickbacks were part of the system in the companies. The poor governance practices led to the collapse of so many companies in Nigeria. Hence the need to study corporate governance and its impact on the management of AIRTEL Mobile Communication Kaduna main branch.

1.3 Objective of the Study

The main objective of the study is to examine the corporate governance and its impact on the management of AIRTEL Mobile Communication. The specific objectives are:

i) To examine the effect of corporate governance on the performance of AIRTEL.

ii) To examine the internal and external corporate governance control mechanism in AIRTEL.

iii) To identify the systemic problems of corporate governance in AIRTEL.

iv) To proffer workable solutions to the identified problem of corporate governance in AIRTEL.

1.4 Significance of the Study

The study will be significant to AIRTEL Mobile Communication especially as they utilize the findings of this research in enhancing policy governance in their organization. The study will also add to the existing knowledge on the subject matter and will also be a reference material for further research on corporate governance.

1.5 Research Questions

The central research question is: What is the impact of corporate governance on the management of AIRTEL Mobile Communication? The specific questions are:

i) How does corporate governance affect the performance of AIRTEL?

ii) What are the internal and external corporate governance control mechanism in place in AIRTEL?

iii) What are the systemic problems militating against corporate governance in AIRTEL?

iv) What are the solutions to such problems?

1.6 Scope of the Study

The study covers the examination of the impact of corporate governance on AIRTEL Mobile Communication. The collection of empirical data is limited to AIRTEL Mobile Communication Kaduna main office. The study covers a time from 2006 – 2011.

1.7 Definition of Terms

Corporate Governance: This is relationship that exists between the different participants, and defining the direction of the firm.

Corporation: This refers to corporate entity or a body by means of which capital is acquired, used for investing in assets producing goods and services.

Shareholders: People who have invested in a company through subscribing to the company’s stock.

Board Structure: Management at the top comprising of board of directors.

Ownership Structure: Shareholders and directors.

CEO: Acronym for Chief Executive Officer.

.

CORPORATE GOVERNANCE AND ITS IMPACT ON THE MANAGEMENT OF AN ORGANIZATION



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.NET

Researchwap.net is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.net guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.