Corporate Governance And Profitability of Listed Cement Companies In Nigeria.
ABSTRACT
Profitability is a vital factor that relates to the way and manner in which financial resourcesavailable to firm are judiciously used to achieve the overall corporate objective of anorganization.
Profitability keeps organization in business and creates a greater prospect forfuture opportunities.
However, corporate profitability is faced with governance challengesrecently, which undermine the future prospects and opportunities of corporate entitiesaround the world, particularly developing economies like Nigeria.
This study assessed theimpact of corporate governance mechanisms on the profitability (return on equity ROE andreturn on assets ROA) of quoted cement companies in Nigeria.
TABLE OF CONTENTS
Title Page——–i
Declaration——ii
Certification——iii
Dedication——iv
Acknowledgements——-v
Abstract——vi
Table of Contents—–vii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study———–1
1.2 Statement of the Problem———7
1.3 Research Questions———9
1.4 Objectives of the Study——–9
1.5 Statement of Research Hypotheses——10
1.6 Scope of the Study——-10
1.7 Significance of the Study—-11
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction———–13
2.2 Conceptualization———-13
2.3 Historical Overview of Corporate Governance——–20
2.4 Corporate Governance Mechanisms——–21
2.5 Review of Empirical Studies——27
2.6 Theoretical Framework——–36
2.7 Summary———43
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction———–45
3.2 Research Design————45
3.3 Population and Sample of the Study———–46
3.4 Sources and Method of Data Collection——–46
3.5 Technique of Data Analysis———-46
3.6 Variables Measurement and Models Specification————-47
3.7 Justification of Methods and Techniques———–49
3.8 Summary———-49
CHAPTER FOUR: RESULTS PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction—-50
4.2 Descriptive Statistics—-50
4.3 Correlation Results——-53
4.4 Presentation of Regression Results and Hypotheses Testing——-56
4.5 Discussion of Major Findings——62
4.6 Policy Implication of the Findings——–63
4.7 Summary———–63
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary——-65
5.2 Conclusion——-66
5.3 Recommendations——-67
5.4 Limitations——68
5.5 Area of Further Research—-68
References—69
Appendices—-77
INTRODUCTION
Background to the Study
Firms‟ profitability is a vital factor that relates to the way and manner in whichfinancial resources available to a firm are judiciously used to achieve the overallcorporate objective of an organization.
Profitability keeps organization in business andcreates a greater prospect for future opportunities.
Therefore, profitability is a majorperformance metric in the corporate world, which determines wealth transfer betweenpersons and measures the direction of business entity as well as decision base bydifferent users of accounting information (Bello, 2010).
However, corporate profitability is faced with governance challenges recently, whichundermine the future prospects and opportunities of corporate entities around theworld, particularly developing economies like Nigeria.
Consequently, corporatefailures worldwide and new studies on how to run firms effectively emerged; a streamof prior researches have observed that the management of firms and their survival areassociated with the type of management that is in place.
This together with the globalcompetitive business environment requires sound corporate governance (Maher &Andersson, 1999).
REFERENCES
Adams, R. B., & Mehran, H. (2005): Corporate Performance, Board Structure and itsDeterminants in the Banking Industry, EFA, Moscow Meetings. Available aSSRN: http://ssrn.com/abstract=302593 or doi:10.2139/ssrn.302593.
Retrieved13 November, 2014Adams, R. B., & Mehran, H. (2008): Corporate Performance, Board Structure andtheir Determinants in the Banking Industry.Federal Reserve Bank of NY StaffReport No. 330, Revised October 2011. Retrieved 13 November, 2014
Adebayo O. S, Ayeni, G. O., & Oyewole F. A. (2013): Relationship betweenCorporate Governance and Organizational Performance: Nigerian ListedOrganizations Experience.
Aganga, O., (20014): Cement Industry Attracts $8billion New Investments, athttp://www.punchng.com/business/business-economy/cement-industry-attracts8bn-new-investments-aganga/
Aguilera, R.V. (2005): Corporate Governance and Director Accountability: AnInstitutional Comparative Perspective, British Journal of Management, 16, 39-53.
Alvarado, N. R., Briones, J. L., & Ruiz, P. F. (2011): Gender diversity on Boards ofDirectors and Business Success. Investment Management and FinancialInnovations, 8(1)
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