The research project was on the impact of corporate governance mechanism on firm performance in Nigeria. The objectives of the research were to assess the effectiveness of the processes of corporate governance in Nigeria organization, to ascertain the extent to which the composition of the Board of Directors impact on the firm's financial performance. The research methodology involves survey method and the research design involves analysis of responses through questionnaires being distributed. The research found that corporate governance promotes effective management and administration of organization in Nigeria, Corporate governance mechanism and control reduce the inefficiencies that arise from moral hazard and adverse selection. It is recommended that all parties to corporate governance must be determined to observe the key elements of corporate governance and also all accepted principles of corporate.




1.1     Background of the Study

1.2     Statement of Problem

1.3     Objectives of the Study

1.4     Research Questions

1.5     Research Hypothesis

1.6     Significance of the Study

1.7     Scope of the Study

1.8     Limitations of the Study

1.9     Definitions of Terms



2.1      Historical of Corporate Governance

2.2     Impact of Corporate Governance

2.3     Role of Institutional Investors

2.4     Parties to Corporate Governance

2.5     Principles of Good Corporate Governance

2.6     Mechanisms and Controls

2.7     Internal Corporate Governance Control

2.8     External Corporate Governance Controls

2.9     Role of the Accountant

2.10   Rules versus Principles

2.11   Action beyond Obligation

2.12   Corporate Governance Models around the World

2.23   Anglo - American Model

2.14   Codes and Guidelines

2.15   Corporate Governance and Firm Performance

2.16   Board Composition

2.17   Remuneration / Compensation

2.18   Systemic Problems of Corporate Governance



3.0     Introduction

3.1     Research Design

3.2     Sources of Data Collection

3.3     Population of the Study

3.4     Samples Size and Sampling Techniques

3.5     Data Collection Instruments

3.6     Method of Data Analysis



4.1     Introduction

4.2     Presentation of Data Collected From the Respondents

4.3     Test of Hypothesis



5.1     Summary of Findings

5.2     Conclusion

5.3     Recommendations

5.4     Suggestion for Further Research






Corporate governance is the set of process, customs, policies, laws, and institutions' affecting the way a corporation was directed, administered or controlled. Corporate governance also includes the relationships among the many stake holders are the shareholders, management, and the board of directors. Other stakeholders include labor (employers) customers, creditors (e.g. banks, bondholders), suppliers, regulators and the community at large. (Dignam and Lowry 2006).

Corporate governance is a multi-faceted subject. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that tries to reduce or eliminate the principal agent problem.

A related but separate thread of discussions focuses on the impact of a corporate governance system in economic efficiency, with a strong emphasis shareholders' welfare. There are yet other aspects to the corporate governance subject, such as the stakeholders view and the corporate governance models around the world.

Corporate governance was defined in Cadbury report (1992) as; 'the system by which companies are directed and controlled. The role of shareholders is to appoint the directors and the external auditors, and to satisfy themselves that an appropriate governance structure is in place. The directors are responsible for setting the company's strategic arms, providing the leadership to put these into effect, supervising the management of the business and reporting to shareholders on their stewardship. The financial aspects of corporate governance are identified as the way in which the board sets financial policy 'and oversees its implementation (including the use of financial controls) and the process of reporting to the shareholders on the activities and development of the company.

According to Kwakwa and Nzekwu (2003), governance is a vital ingredient in the maintenance of the dynamic balance between the need for order and equality in society; promoting the efficient production and delivery of goods and services; ensuring accountability in the house of power and the protection of human rights and freedoms. Governance is, therefore concerned with the processes, systems, practices and procedures that govern institutions, the manner in which these rules and regulations are applied and followed, the relationships created by these rules and nature of the relationships.

The concern with good corporate govern once emanated from the ripples and the challenges of the scandals associated with the collapse of the scandals associated with the collapse of ENRON Corporation, WorldCom, TYCO, Global crossing and ADELPHIA in the USA and the recent accounting disclosure in lever brothers (now Unilever) are Cadbury Nig. Plc. The scandals revealed hope accounting fraud and corporate abuses (CBN Bullion 2007).

Good corporate Governance in the banking sector is vital because many banks are now global in terms of size of shareholders' finds, foreign investment inflow and lending activities. Good corporate governance is also in line with global best practices.

David Smith (2002), President and CEO of the Canadian Institute of Chartered Accountant sees corporate governance as a "culture that has a common understanding of the roles of management and board.' To him corporate governance is a culture of mutual respect that both parties have for each other role. It is a culture of continuous open dialogue and communication. In rounding up his views on corporate governance, smith noted that it is about people, "people doing not just what the roles say but about doing what is right.

Corporate governance is an internal system encompassing policies, processes and people, which serve the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity and integrity. Sound corporate governance is dependent on external market place commitment and legislation plus a healthy board culture that safeguards policies and processes. (Definition of Gabrielle 0' Donovan).

It can be refers to the processes by which all companies are directed and controlled corporate governance is also a system of structuring, operating and controlling a bank, with a view towards attaining long term strategic goals to maximize, shareholders (employers, depositors), suppliers other customers, and other stakeholders)

Corporate governance is now widely accepted as being concerned with improved stakeholder performance viewed from this perspective, corporate governance is all about accountability, boards, disclosures, investor involvement and related issues. Research has shown that "firms with stronger shareholders rights had higher firm valves higher profits, higher sales growth, lower capital expenditure and fewer corporate acquisitions' (McRitchie, 2001). project topics   final year project topics and research materials 


The executive environment of firms is under siege bankruptcy, insolvencies, massive unemployment, dwindling shareholders' turnover, failing national economies, etc are just a few the many woes at failure of corporate governance.

When companies go down because of a deliberate or an unconscious neglect of the fundamentals of governance the impact can be felt almost in every facet of man's endeavor in the society; be it social, political, economical, or cultural. In fact, a failure of governance can 'lead to a subjugation of the system with debilitating consequences as such mention in the first paragraph.

That is the more reason why there has been a renewed interest in the corporate governance practices of Modern Corporation especially in the wake of the new millennium. This renewed interest is particularly due to the high profile collapses of a number of large firms across industries ­from banking to manufacturing.

To date, too much of corporate governance debate and discussion have centered in legislative policy to defer fraudulent activities and transparency policy, which misleads executives to treat the symptoms and not the cause. Therefore, to restore confidence, get the real sector working and provide the requisite filling needed by the economy, the real issues of corporate governance needs to be addressed.


The main objective of study is to critically the impact of corporate governance mechanism on firm's financial performance in Nigeria. Other objectives are:

To assess the effectiveness of the processes of corporate governance in Nigeria organization. To examine the relationship between the ownership structure and effective adherence to governance procedures and structure. To ascertain the extent to which the composition of the Board of Directors impact on the firm's financial performance. To highlight factors that hinder effective adherence and implementation of corporate governance procedures. To examine the relationship between corporate governance procedures and firm is financial performance. To examine the relationship between the appointment of Chief Executive Officers (CEO) and stakeholders interest.


How effective are the corporate governance procedures in Nigeria organization? Is there relationship between the ownership structure and effective adherence to governance procedures and structure? To what extent does the composition of the Board of Directors impact on the firm's financial performance? What the factors that hinder effective adherence and implementation of corporate governance procedures? Does a corporate governance procedure promote firm's financial performance (growth) Is there a significant relationship between the atonement of Chief Executive Officers (CEO) and stakeholder's interest? Does a corporate governance procedure have effect on stakeholder? What are the impacts of corporate governance to Nigerian economy? What are the key elements of good corporate governance? Does corporate governance mechanism and control reduce the inefficiencies that arise from moral hazard and adverse selection?


(1)    Ho: Corporate governance policies are not made in most Nigerian organizations.

Hi: Corporate governance policies are made by most Nigerian organizations.

(2)    Ho: Corporate governance mechanism and control does not reduce inefficiencies in the operation of Nigerian organizations:

Hi: Corporate governance mechanism and control reduces inefficiencies in the operation of Nigerian organizations.

(3)    Ho: there is no significant relationship between ownership structure and effective adherence to governance procedures and structure.

Hi: there is a significant relationship between ownership structure and effective adherence to governance procedures and structure.


This study is necessary and inevitable if we must legends firms’ capacity for good governance. It will provide insight into the mechanics of corporate governance and the dividends enjoyable if properly pursued by corporate organizations. It will promote internal corporation governance control that monitor activities and then take corrective measures to accomplish organizational goals. It will highlight the various core element of corporate governance such as honesty, trust, performance orientation responsibility and account ability and full commitment to the organization. Conclusively, the study will express the results of good corporate governance to all associated with' the organization. To build an ideal control system that regulates both motivation and ability in Nigerian firms.

This study will promote internal corporate governance controls that monitor activities and then take corrective action to accomplish organizational goals.

This work provides information that guides the decision makers on how to maintain balance between different stakeholders in an organization.

The study reveals the key elements of god corporate governance principles, which include honesty, trust and integrity, openness, performance orientation, responsibility and accountability, mutual respect, and commitment to the organization.


The scope of this work will be restricted to the impact of corporate governance mechanism and firm’s financial performance in Nigeria taking its evidence from Cadbury Nigeria Plc Lagos Plant.


The difficulty in obtaining information from the staff of Cadbury Nigeria Pic is the major limitation of this study due to their unwillingness to supply the needed information. There was also a limitation in term of library facilities. It is only center for management and development (CMD) library that have enough materials on corporate governance among all the libraries visited by the researcher.


CORPORATE GOVERNANCE: The way in which organization are run and controlled. It is also the system by which companies are directed and controlled.

DIRECTION: It involves the use of personal managerial authority to establish a clear future strategy and how change will occur.

EFFECTIVENESS: This is a measure of the level of valve, which can be created from a given level of resources.

OBJECTIVE: A statement of what is to be achieved and when results are to be accomplished.

POLICY: A rule or guideline, which expresses the limits within which action should occur.

POWER: This is the extent to which individuals or groups are able to persuade, induce or coerce others into following certain courses of action.

STAKEHOLDERS: They are those individuals or groups who depend on the organizations fulfill their own goals and on whom in turn, the organization depends.

STRATEGY: This is the direction and scope of an organization over the long-term, which achieves advantage for the organization through its configuration of resources within a charging environment to meet the needs of markets and to fulfill stakeholder expectation.



RESEARCHWAP.COM 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. 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.


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.
  • " 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 "" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "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.
  • " 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 .
  • "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.
  • "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, 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, 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