Corporate Governance and Banks’ Turmoils: Assessment of Shareholders Response

Authors

  • Itoro Moses Ikoh Banking & Finance/ Insurance Department Faculty of Business Administration University Of Uyo, Uyo-Nigeria
  • Christiana Ben Nsien Dept. of Business Education School of Vocational and Technical Education College of Education, Akwa Ibom State, Nigeria
  • Wokoma Tamuno-Inam Nicholas Department of Accounting Faculty of Management Sciences University of Calabar, Calabar-Nigeria

Abstract

Cooperate governance is seen as the mechanism of control for harnessing the ugly face of bank turmoil’s. It can persuade, induce complete and motivate corporate managements in order to eliminate the corporate deviance and turmoil in the banks. It is a system and power for decision making, risk monitoring, setting of objectives and policies and the assessment of overall bank internal and external performance and control optimization. The study made use of secondary data obtained from 5 commercial banks on the assessment of their corporate board members. We subjected their responses on a 6-point Likert scale measurement into a Pearson Product Moment Correlation Test as well as t-test. The result of the findings revealed that good corporate governance of banks will reduced mistrust between shareholders and management but may not reduce the overall bank turmoil. This is because of other variables associated with bank turmoil’s. The study recommends that corporate governance can only prevent banking turmoil’s with adequate implementation of code of corporate governance for best practices in Banks, understanding and diligent discharged of responsibility in a prudent and transparent manner. Finally the study recommends that our banks board of directors and management team should be abreast with adequate, relevant and needed knowledge, experiences, professional skills, competences in order to remove in total the bank turmoils.

DOI: 10.5901/jesr.2013.v3n8p39

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Published

2013-10-03

How to Cite

Corporate Governance and Banks’ Turmoils: Assessment of Shareholders Response. (2013). Journal of Educational and Social Research, 3(8), 39. https://www.richtmann.org/journal/index.php/jesr/article/view/1736