Corporate Governance and Financial Distress in the Banking Industry: Nigerian Experience
Keywords:
Banking industry, corporate governance, financial distress, Nigerian experience
Abstract
The study investigates the effect of corporate governance on financial distress in the Nigerian banking industry and examines the discriminatory power of corporate governance mechanism of the board, audit committee, executive management and auditor in one model for financial distress prediction. Secondary data obtained from annual financial statements of twenty banks between 2005 and 2015 were used for the study. The data were analyzed using descriptive statistics and generalized quantile regression model. The empirical evidence from the study suggests that financially distressed banks are characterized by large board size with members who may not be well versed in banking complexities, chairmen and CEOs with significant shareholding both individually and collectively. Furthermore, the evidence also shows that distressed banks suffer major decline in customer deposits despite increase in size. The study concludes that financial distress can be caused by poor corporate governance mechanism.
Downloads
Download data is not yet available.
References
Adams, R. B. (2010). Governance at Banking Institutions. In H. K. Baker, & R. Andersen (Eds.), Corporate Governance. NJ, Hoboken: Wiley & Sons. Adams, R. B. (2012). Governance and the Financial Crisis. International Review of Finance, 12(1), 7-38. Adegbite, E. (2015). Good Corporate Governance in Nigeria: Antecedents, Propositions and Peculiarities. International Business Review, 24(2), 319-330. Adekanye, F. (1983). The Elements of Banking in Nigeria (4th ed.). Lagos: F & A Publications. Adeyemi, B. & Olowu, A. O. (2013). Corporate Governance: Has the Nigerian Banking Sector Learnt any Lesson? International Journal of Business and Social Research, 3(2), 49-59. Ahmad, B. A. & Mansur, L. K. (2012). Corporate Governance and Financial Performance of Banks in the Post Consolidation Era in Nigeria. International Journal of Social Sciences and Humanity Studies, 4(2), 2736. Ailemen, I. (2003). Bank Distress: Concepts, Causes and Magnitude: Role of Trade Union and Bank Management. The Nigerian Banker, October-December, 1-8. Ajala, O. A., Amuda, T. & Arunlogun, L. (2012). Evaluating the Effects of Corporate Governance on Performance of Nigerian Banking Sector. Review of Contemporary Business Research, 1(1), 32-42. Akingunola, R. O., Adekunle, O. A. & Adedipe, O. A. (2013). Corporate Governance and Bank's Performance in Nigeria. European Journal of Business and Social Sciences, 2(8), 89-111. Aldieri, L. & Vinci, C. (2017). Quantile Regression for Panel Data: An Empirical Approach for Knowledge Spillovers Endogeneity. Germany: MPRA. Altman, E. I. (1968). Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. The Journal of Finance, 23(4), 589-609. Amendola, A., Restaino, M. & Sensini, L. (2015). An analysis of the determinants of financial distress in Italy: A competing risks approach. International Review of Economics and Finance, 37, 33–41. Barr, R. S., Seiford, L. M. & Siems, T. F. (1993). An Envelopment Analysis Approach to Measuring the Managerial Efficiency of Banks. Annals of Operations Research, 45(1), 1-19. Baum, C. F. (2013). Quantile Regression. Boston College.
Bernadette, J. J. & Corina, J. (2015). Corporate Governance Mechanisms and Bank Performance: ResourceBased View. Procedia Economics and Finance, 31, 117-123. Black, B. S., deCarvalho, A. G. & Gorga, E. (2012). What Matters and for Which Firms for Corporate Governance in Emerging Markets? Evidence from Brazil and other BRIK Countries. Journal of Corporate Finance, 18, 934-952. Briano-Turrent, G. D. & Rodriguez-Ariza, L. (2016). Corporate Governance Ratings on Listed Companies: An Institutional Perspective in Latin America. European Journal of Management and Business Economics, 25, 63-75. Cadbury. (1992). Report of the Committee on the Financial Aspects of Corporate Governance. London: The Cadbury Report. Chan, C., Chou, D., Lin, J. & Liu, F. (2016). The Role of Corporate Governance in Forecasting Bankruptcy: Pre and Post SOX Enactment. North American Journal of Economics and Finance, 35, 166-188. Chang, C. (2009). The Corporate Governance Characteristics of Financially Distressed Firms: Evidence from Taiwan. Journal of American Academy of Business, 15, 125-132. Chen, H. (2008). The Timescale Effects of Corporate Governance Measure on Predicting Financial Distress. Review of Pacific Basin Financial Markets and Policies, 11, 35-46. Chi, W., Huang, H. & Xie, H. (2015). A Quantile Regression Analysis on Corporate Governance and the Cost of Bank Loans: A Research Note. Review of Accounting and Finance, 14(1), 2-19. Cielen, A., Peeters, L. & Vanhoof, K. (2004). Bankruptcy Prediction Using a Data Envelopment Analysis. European Journal of Operational Research, 154, 526-532. Cook, D. O., Kieschnick, R. & McCullough, B. D. (2008). Regression Analysis of Proportions in Finance with Self Selection. Journal of Empirical Finance, 15, 860-867. Crespi-Cladera, R. & Pascual-Fuster, B. (2015). Executive Directors' Pay, Networks and Operating Performance: The Influence of Ownership Structure. Journal of Accounting and Public Policy, 34, 175203. Duhnfort, A. M., Klein, C. & Lampenius, N. (2008). Theoretical Foundations of Corporate Governance Revisited: A Critical Review. Corporate Governance and Control, 6(2), 424-433. Egan, M., Hortacsu, A. & Matvos, G. (2015). Deposit Competition and Financial Fragility: Evidence from the US Banking Sector. The University of Chicago, Booth School of Business. Chicago: Fama-Miller Center for Research in Finance. Fadare, S. (2011). Banking Crisis and Financial Stability in Nigeria. International Research Journal of Finance and Economics, 63, 1-12. Garcia-Torea, N., Fernandez-Feijoo, B. & de la Cuesta, M. (2016). Board of Director's Effectiveness and the Stakeholder Perspective of Corporate Governance: Do Effective Boards Promote the Interests of Shareholders and Stakeholders? Business Research Quarterly, 19, 246-260. Garuba, A. O. & Otomewo, G. O. (2015). Corporate Governance in the Nigerian Banking Industry: Issues and Challenges. African Research Review, 9(2), 104-117. Geng, R., Bose, I. & Chen, X. (2015). Prediction of Financial Distress: An Empirical Study of Listed Chinese Companies Using Data Mining. European Journal of Operational Research, 241, 236-247. Goldstein, I. & Pauzner, A. (2005). Demand-Deposit Contracts and the Probability of Banks Runs. The Journal of Finance, LX(3), 1293-1327. Haldane, A. (2012). A Leaf Being Turned. A Speech Given by Andrew. G. Heldane, Executive Director, Financial Stability and Member of the Financial Policy Committee to Occupy Economics, "Socially Useful Banking" at Friend's House, London. Hecko, H. (2007). Financial Intermediationin the Pre-Consolidated Banking Sector in Nigeria. World Bank Heremans, D. (2007). Corporate Governance Issues for Banks: A Financial Stability Perspective. Centre for Economic Studies, Department of Economics, Faculty of Economics and Applied Economics, Discussion Paper Series. Hoggarth, G., Reis, R., & Saporta, V. (2002). Costs of Banking System Instability: Some Empirical Evidence. Journal of Banking and Finance, 26, 825-850. Idam, L. E. (2015). Corporate Governance in Nigerian Banks: A Critical Review. IOSR Journal of Business and Management, 17(2), 54-61. Iqbal, J., Strobl, S., & Vahamaa, S. (2015). Corporate Governance and the Systemic Risk of Financial Institutions. Journal of Economics and Business, 82, 42-61.
James, O. & Okafor, C. O. (2011). Corporate Governance Mechanism and Firm's Financial Performance in Nigeria. Journal of Accounting Research, 1(1), 12-18. Johnson, A. L. & Kuosmanen, T. (2012). One-Stage and Two-Stage DEA Estimation of the Effects of Contextual Variables. European Journal of Operational Research, 220, 559-570. Kajola, S. (2008). Corporate Governance and Firm Performance: The Case of Nigeria Listed Firms. European Journal of Economics, Finance and Administrative Science, 14, 16-28. Kirkpatrick, G. (2009). The Corporate Governance Lessons from the Financial Crisis. Working Paper, OECD. Koutsomanoli-Filippaki, A. I., & Mamatzakis, E. C. (2011). Efficiency under Quantile Regression: What is the Relationship with Risk in the EU Banking Industry. Review of Financial Economics, 20, 84-95. Kumar, S. & Gulati, R. (2008). An Examination of Technical, Pure Technical, and Scale Efficiencies in India Public Sector Banks using Data Envelopment Analysis. Eurasian Journal of Business and Economics, 1 (2), 33-69. Lakshan, A. M. & Wijekoon, W. M. (2012). Corporate Governance and Corporate Failure. Procedia Economics and Finance, 2, 191-198. Lang, M. & Schmidt, P. G. (2016). The Early Warnings of Banking Crises: Interaction of Broad Liquidity and Demand Deposits. Journal of International Money and Finance, 61, 1-29. Letza, S., Sun, X. & Kirkbride, J. (2004). Shareholding Versus Stakeholding: A Critical Review of Corporate Governance. Corporate Governance: An International Review, 12(3), 242-263. Li, Z., Crooks, J. & Andreeva, G. (2014). Chinese Companies Distress Prediction: An Application of Data Envelopment Analysis. Journal of the Operational Research Society, 65, 466-479. Liu, M. L. & Miu, P. (2010). A Hybrid Bankruptcy Prediction Model with Dynamic Leadings on AccountingRatio-Based and Market-Based Information: A Binary Quantile Regression Approach. Journal of Empirical Finance, 17, 818-833. Manzaneque, M., Priego, A. M. & Merino, E. (2016). Corporate Governance Effect on Financial Distress Likelihood: Evidence from Spain. Spanish Accounting Review, 19(1), 111-121. McDonald, J. (2009). Using Linear Square and Tobit in Second Stage DEA Efficiency Analysis. European Journal of Operational Research, 197(2), 792-798. Money, K. & Schepers, H. (2007). Are CSR and Corporate Governance Converging? A View from Boardroom Directors and Company Secretaries in FTSE 100 Companies in UK. Journal of General Management, 33 (2), 1-11. Munisi, G. & Randoy, T. (2013). Corporate Governance and Company Performance across Sub-Saharan African Countries. Journal of Economics and Business, 70, 92-110. Ohlson, J. A. (1980). Financial Ratios and the Probabilistic Prediction of Bankruptcy. Journal of Accounting Research, 18(1), 109-131. Organization for Economic Cooperation and Development. (1999). Principle of Corporate Governance. Paris: OECD. Osaze, B. E. (2011). The Specificities of Value Melt-Down in the Nigerian Stock Exchange 2008-2010: Some Parallax Snaps. Benin: University of Benin. Osaze, B. E. & Anao, A. R. (1990). Managerial Finance. Benin: UNIBEN Press. Papke, L. E. & Wooldridge, J. M. (2008). Panel Data Methods for Fractional Response Variables with an Application to Test Pass Rates. Journal of Econometrics, 145, 121-133. Parente, P. & Santos-Silva, J. (2016). Quantile Regression with Clustered Data. Journal of Econometric Methods, 5(1), 1-15. Pericoli, F. M., Pierucci, E. & Ventura, L. (2013). Cross-Border Equity Portfolio Choices and the Diversification Motive: A Fractional Regression Approach. Economic Letters, 121(2), 282-286. Powell, D. (2014). Did the Economic Stimulus Payments of 2008 reduce Labour Supply ? Evidence from Quantile Panel Data Estimation. RAND Corporation. Powell, D. (2016). Quantile Treatment Effects in the Presence of Covariates. RAND Corporation. Premachandra, I. M., Bhabra, G. S., & Sueyoshi, T. (2009). DEA as a Tool for Bankruptcy Assessment: A Comparative Study with Logistic Regression Technique. European Journal of Operational Research, 193, 412-424. Premachandra, I. M., Chen, Y. & Watson, J. (2011). DEA as a Tool for predicting Corporate Failure and Success: A Case of Bankruptcy Assessment. Omega, 39(6), 620-626. Rezaee, Z. (2007). Corporate Governance Post Sarbanes-Oxley, Regulations, Requirements and Integrated Processes. Hoboken, New Jersey: John Wiley & Sons Inc.
Rezaee, Z. & Riley, R. (2010). Financial Statement Fraud: Prevention and Detection (2nd ed.). New Jersey: Wiley. Rousseliere, D. (2014). A Flexible Approach to Efficiency Analysis with Multiple Treatments: Using Multiple Imputation and Quantile Regression to Estimate the Impact of Quality on the Efficiency of Cooperatives. Retrieved March 13, 2017, from www.sfer.asso.fr Rygh, A. (2016). Corporate Governance and International Business. Essays on Multinational Enterprises, Ownership, Finance and Institutions. Retrieved January 18, 2017, from http://brage.bibssys,no/bi Sanda, A. U., Mikailu, A. S. & Tukur, G. (2005). Corporate Governance Mechanism and Firm Financial Performance in Nigeria. Nairobi: AERC Research Paper 149. Sanusi, L. (2010). Global Financial Meltdown and the Reforms in the Nigerian Banking Sector. Being a Paper Delivered at the Convocation Ceremonies , ATBU Bauchi. Bauchi: Abubakar Tafawa Balewa University. Sanusi, L. S. (2011). Banks in Nigeria and National Economic Development: A Critical Review. A Lecture at the Canadian High Commission in Collaboration with the Chartered Institute of Bankers of Nigeria and the Royal Bank of Canada, Abuja. Sealey, C. & Lindley, J. T. (1977). Inputs, Outputs and a Theory of Production and Cost at Depository Financial Institutions. Journal of Finance, 32, 1251-1266. Shawtari, F. A., Salem, M. A., Hussain, H. I., Alaeddin, O. & Thabit, O. B. (2016). Corporate Governance and Valuation: Inferences from Quantile Regression. Journal of Economics, Finance and Administrative Science, 21, 81-88. Shehzad, C. T., de Hann, J. & Scholtens, B. (2010). The Impact of Bank Ownership Concentration onImpaired Loans and Capital Adequacy. Journal of Banking and Finance, 34, 399-408. Shetty, U., Pakkala, T. P. & Mallikarjunappa, T. (2012). A Modified Directional Distance Formulation of DEA to Assess Bankruptcy: An Application to IT/ITES Companies in India. Expert Systems with Applications, 3, 1988-1997. Shiri, M. M. & Salehi, M. (2012). Prediction of Financial Distress in Tehran Stock Exchange Using DEA Approach. Indian Journal of Science and Technology, 5(10), 3461-3473. Simar, L. & Wilson, P. W. (2007). Estimation and Inference in Two-Stage, Semi-Parametric Models of Production Processes. Journal of Econometrics, 136(1), 31-64. Simar, L. & Wilson, P. W. (2011). Two Stage DEA: Caveat Emptor. Journal of Productivity Analysis, 36, 205-218. Simpson, W. G. & Gleason, A. E. (1999). Board Structure, Ownership and Financial Distress in Banking Firms. International Review of Economics and Finance, 8(3), 281-292. Thomas, I. & Mohammed, D. (2011). The Impact of Capital Structure and Corporate Governance on the Performance of Nigerian Commercial Banks. Journal of Accounting Research, 1(1), 16-24. Uche, C. (2014). Corporate Governance in Nigeria Financial Industry. Chartered Institute of Bankers of Nigeria Journal, 2, 11-23. Villanueva-Villar, M., Rivo-Lopez, E., & Lago-Penas, S. (2016). On the Relationship between Corporate Governance and Value Creation in an Economic Crisis: Empirical Evidence for the Spanish Case. Business Research Quartely, 19, 233-245. Wang, T. & Hsu, C. (2013). Board Composition and Operational Risk Events of Financial Institutions. Journal of Banking and Finance, 37, 2042-2051. Wanke, P., Barros, C. P. & Faria, J. R. (2015). Financial Distress Drivers in Brazillian Banks: A Dynamic Slack Approach. European Journal of Operational Research, 240(1), 258-268. Wernerfelt, B. (1984). A Resource Based View of the Firm. Strategic Management Journal, 5(2), 171-180. Xu, Z. (2007). The Structure of Ownership and Corporate Governance. The Case of Chinese Listed Companies. Retrieved March 13, 2017, from http://bura.brunel.ac.uk/handle/2438/5357 Zeitun, R. (2009). Ownership structure, corporate performance and failure: evidence from panel data of emerging market the case of Jordan. Corporate Ownership and Control, 6(4), 96–114.
Bernadette, J. J. & Corina, J. (2015). Corporate Governance Mechanisms and Bank Performance: ResourceBased View. Procedia Economics and Finance, 31, 117-123. Black, B. S., deCarvalho, A. G. & Gorga, E. (2012). What Matters and for Which Firms for Corporate Governance in Emerging Markets? Evidence from Brazil and other BRIK Countries. Journal of Corporate Finance, 18, 934-952. Briano-Turrent, G. D. & Rodriguez-Ariza, L. (2016). Corporate Governance Ratings on Listed Companies: An Institutional Perspective in Latin America. European Journal of Management and Business Economics, 25, 63-75. Cadbury. (1992). Report of the Committee on the Financial Aspects of Corporate Governance. London: The Cadbury Report. Chan, C., Chou, D., Lin, J. & Liu, F. (2016). The Role of Corporate Governance in Forecasting Bankruptcy: Pre and Post SOX Enactment. North American Journal of Economics and Finance, 35, 166-188. Chang, C. (2009). The Corporate Governance Characteristics of Financially Distressed Firms: Evidence from Taiwan. Journal of American Academy of Business, 15, 125-132. Chen, H. (2008). The Timescale Effects of Corporate Governance Measure on Predicting Financial Distress. Review of Pacific Basin Financial Markets and Policies, 11, 35-46. Chi, W., Huang, H. & Xie, H. (2015). A Quantile Regression Analysis on Corporate Governance and the Cost of Bank Loans: A Research Note. Review of Accounting and Finance, 14(1), 2-19. Cielen, A., Peeters, L. & Vanhoof, K. (2004). Bankruptcy Prediction Using a Data Envelopment Analysis. European Journal of Operational Research, 154, 526-532. Cook, D. O., Kieschnick, R. & McCullough, B. D. (2008). Regression Analysis of Proportions in Finance with Self Selection. Journal of Empirical Finance, 15, 860-867. Crespi-Cladera, R. & Pascual-Fuster, B. (2015). Executive Directors' Pay, Networks and Operating Performance: The Influence of Ownership Structure. Journal of Accounting and Public Policy, 34, 175203. Duhnfort, A. M., Klein, C. & Lampenius, N. (2008). Theoretical Foundations of Corporate Governance Revisited: A Critical Review. Corporate Governance and Control, 6(2), 424-433. Egan, M., Hortacsu, A. & Matvos, G. (2015). Deposit Competition and Financial Fragility: Evidence from the US Banking Sector. The University of Chicago, Booth School of Business. Chicago: Fama-Miller Center for Research in Finance. Fadare, S. (2011). Banking Crisis and Financial Stability in Nigeria. International Research Journal of Finance and Economics, 63, 1-12. Garcia-Torea, N., Fernandez-Feijoo, B. & de la Cuesta, M. (2016). Board of Director's Effectiveness and the Stakeholder Perspective of Corporate Governance: Do Effective Boards Promote the Interests of Shareholders and Stakeholders? Business Research Quarterly, 19, 246-260. Garuba, A. O. & Otomewo, G. O. (2015). Corporate Governance in the Nigerian Banking Industry: Issues and Challenges. African Research Review, 9(2), 104-117. Geng, R., Bose, I. & Chen, X. (2015). Prediction of Financial Distress: An Empirical Study of Listed Chinese Companies Using Data Mining. European Journal of Operational Research, 241, 236-247. Goldstein, I. & Pauzner, A. (2005). Demand-Deposit Contracts and the Probability of Banks Runs. The Journal of Finance, LX(3), 1293-1327. Haldane, A. (2012). A Leaf Being Turned. A Speech Given by Andrew. G. Heldane, Executive Director, Financial Stability and Member of the Financial Policy Committee to Occupy Economics, "Socially Useful Banking" at Friend's House, London. Hecko, H. (2007). Financial Intermediationin the Pre-Consolidated Banking Sector in Nigeria. World Bank Heremans, D. (2007). Corporate Governance Issues for Banks: A Financial Stability Perspective. Centre for Economic Studies, Department of Economics, Faculty of Economics and Applied Economics, Discussion Paper Series. Hoggarth, G., Reis, R., & Saporta, V. (2002). Costs of Banking System Instability: Some Empirical Evidence. Journal of Banking and Finance, 26, 825-850. Idam, L. E. (2015). Corporate Governance in Nigerian Banks: A Critical Review. IOSR Journal of Business and Management, 17(2), 54-61. Iqbal, J., Strobl, S., & Vahamaa, S. (2015). Corporate Governance and the Systemic Risk of Financial Institutions. Journal of Economics and Business, 82, 42-61.
James, O. & Okafor, C. O. (2011). Corporate Governance Mechanism and Firm's Financial Performance in Nigeria. Journal of Accounting Research, 1(1), 12-18. Johnson, A. L. & Kuosmanen, T. (2012). One-Stage and Two-Stage DEA Estimation of the Effects of Contextual Variables. European Journal of Operational Research, 220, 559-570. Kajola, S. (2008). Corporate Governance and Firm Performance: The Case of Nigeria Listed Firms. European Journal of Economics, Finance and Administrative Science, 14, 16-28. Kirkpatrick, G. (2009). The Corporate Governance Lessons from the Financial Crisis. Working Paper, OECD. Koutsomanoli-Filippaki, A. I., & Mamatzakis, E. C. (2011). Efficiency under Quantile Regression: What is the Relationship with Risk in the EU Banking Industry. Review of Financial Economics, 20, 84-95. Kumar, S. & Gulati, R. (2008). An Examination of Technical, Pure Technical, and Scale Efficiencies in India Public Sector Banks using Data Envelopment Analysis. Eurasian Journal of Business and Economics, 1 (2), 33-69. Lakshan, A. M. & Wijekoon, W. M. (2012). Corporate Governance and Corporate Failure. Procedia Economics and Finance, 2, 191-198. Lang, M. & Schmidt, P. G. (2016). The Early Warnings of Banking Crises: Interaction of Broad Liquidity and Demand Deposits. Journal of International Money and Finance, 61, 1-29. Letza, S., Sun, X. & Kirkbride, J. (2004). Shareholding Versus Stakeholding: A Critical Review of Corporate Governance. Corporate Governance: An International Review, 12(3), 242-263. Li, Z., Crooks, J. & Andreeva, G. (2014). Chinese Companies Distress Prediction: An Application of Data Envelopment Analysis. Journal of the Operational Research Society, 65, 466-479. Liu, M. L. & Miu, P. (2010). A Hybrid Bankruptcy Prediction Model with Dynamic Leadings on AccountingRatio-Based and Market-Based Information: A Binary Quantile Regression Approach. Journal of Empirical Finance, 17, 818-833. Manzaneque, M., Priego, A. M. & Merino, E. (2016). Corporate Governance Effect on Financial Distress Likelihood: Evidence from Spain. Spanish Accounting Review, 19(1), 111-121. McDonald, J. (2009). Using Linear Square and Tobit in Second Stage DEA Efficiency Analysis. European Journal of Operational Research, 197(2), 792-798. Money, K. & Schepers, H. (2007). Are CSR and Corporate Governance Converging? A View from Boardroom Directors and Company Secretaries in FTSE 100 Companies in UK. Journal of General Management, 33 (2), 1-11. Munisi, G. & Randoy, T. (2013). Corporate Governance and Company Performance across Sub-Saharan African Countries. Journal of Economics and Business, 70, 92-110. Ohlson, J. A. (1980). Financial Ratios and the Probabilistic Prediction of Bankruptcy. Journal of Accounting Research, 18(1), 109-131. Organization for Economic Cooperation and Development. (1999). Principle of Corporate Governance. Paris: OECD. Osaze, B. E. (2011). The Specificities of Value Melt-Down in the Nigerian Stock Exchange 2008-2010: Some Parallax Snaps. Benin: University of Benin. Osaze, B. E. & Anao, A. R. (1990). Managerial Finance. Benin: UNIBEN Press. Papke, L. E. & Wooldridge, J. M. (2008). Panel Data Methods for Fractional Response Variables with an Application to Test Pass Rates. Journal of Econometrics, 145, 121-133. Parente, P. & Santos-Silva, J. (2016). Quantile Regression with Clustered Data. Journal of Econometric Methods, 5(1), 1-15. Pericoli, F. M., Pierucci, E. & Ventura, L. (2013). Cross-Border Equity Portfolio Choices and the Diversification Motive: A Fractional Regression Approach. Economic Letters, 121(2), 282-286. Powell, D. (2014). Did the Economic Stimulus Payments of 2008 reduce Labour Supply ? Evidence from Quantile Panel Data Estimation. RAND Corporation. Powell, D. (2016). Quantile Treatment Effects in the Presence of Covariates. RAND Corporation. Premachandra, I. M., Bhabra, G. S., & Sueyoshi, T. (2009). DEA as a Tool for Bankruptcy Assessment: A Comparative Study with Logistic Regression Technique. European Journal of Operational Research, 193, 412-424. Premachandra, I. M., Chen, Y. & Watson, J. (2011). DEA as a Tool for predicting Corporate Failure and Success: A Case of Bankruptcy Assessment. Omega, 39(6), 620-626. Rezaee, Z. (2007). Corporate Governance Post Sarbanes-Oxley, Regulations, Requirements and Integrated Processes. Hoboken, New Jersey: John Wiley & Sons Inc.
Rezaee, Z. & Riley, R. (2010). Financial Statement Fraud: Prevention and Detection (2nd ed.). New Jersey: Wiley. Rousseliere, D. (2014). A Flexible Approach to Efficiency Analysis with Multiple Treatments: Using Multiple Imputation and Quantile Regression to Estimate the Impact of Quality on the Efficiency of Cooperatives. Retrieved March 13, 2017, from www.sfer.asso.fr Rygh, A. (2016). Corporate Governance and International Business. Essays on Multinational Enterprises, Ownership, Finance and Institutions. Retrieved January 18, 2017, from http://brage.bibssys,no/bi Sanda, A. U., Mikailu, A. S. & Tukur, G. (2005). Corporate Governance Mechanism and Firm Financial Performance in Nigeria. Nairobi: AERC Research Paper 149. Sanusi, L. (2010). Global Financial Meltdown and the Reforms in the Nigerian Banking Sector. Being a Paper Delivered at the Convocation Ceremonies , ATBU Bauchi. Bauchi: Abubakar Tafawa Balewa University. Sanusi, L. S. (2011). Banks in Nigeria and National Economic Development: A Critical Review. A Lecture at the Canadian High Commission in Collaboration with the Chartered Institute of Bankers of Nigeria and the Royal Bank of Canada, Abuja. Sealey, C. & Lindley, J. T. (1977). Inputs, Outputs and a Theory of Production and Cost at Depository Financial Institutions. Journal of Finance, 32, 1251-1266. Shawtari, F. A., Salem, M. A., Hussain, H. I., Alaeddin, O. & Thabit, O. B. (2016). Corporate Governance and Valuation: Inferences from Quantile Regression. Journal of Economics, Finance and Administrative Science, 21, 81-88. Shehzad, C. T., de Hann, J. & Scholtens, B. (2010). The Impact of Bank Ownership Concentration onImpaired Loans and Capital Adequacy. Journal of Banking and Finance, 34, 399-408. Shetty, U., Pakkala, T. P. & Mallikarjunappa, T. (2012). A Modified Directional Distance Formulation of DEA to Assess Bankruptcy: An Application to IT/ITES Companies in India. Expert Systems with Applications, 3, 1988-1997. Shiri, M. M. & Salehi, M. (2012). Prediction of Financial Distress in Tehran Stock Exchange Using DEA Approach. Indian Journal of Science and Technology, 5(10), 3461-3473. Simar, L. & Wilson, P. W. (2007). Estimation and Inference in Two-Stage, Semi-Parametric Models of Production Processes. Journal of Econometrics, 136(1), 31-64. Simar, L. & Wilson, P. W. (2011). Two Stage DEA: Caveat Emptor. Journal of Productivity Analysis, 36, 205-218. Simpson, W. G. & Gleason, A. E. (1999). Board Structure, Ownership and Financial Distress in Banking Firms. International Review of Economics and Finance, 8(3), 281-292. Thomas, I. & Mohammed, D. (2011). The Impact of Capital Structure and Corporate Governance on the Performance of Nigerian Commercial Banks. Journal of Accounting Research, 1(1), 16-24. Uche, C. (2014). Corporate Governance in Nigeria Financial Industry. Chartered Institute of Bankers of Nigeria Journal, 2, 11-23. Villanueva-Villar, M., Rivo-Lopez, E., & Lago-Penas, S. (2016). On the Relationship between Corporate Governance and Value Creation in an Economic Crisis: Empirical Evidence for the Spanish Case. Business Research Quartely, 19, 233-245. Wang, T. & Hsu, C. (2013). Board Composition and Operational Risk Events of Financial Institutions. Journal of Banking and Finance, 37, 2042-2051. Wanke, P., Barros, C. P. & Faria, J. R. (2015). Financial Distress Drivers in Brazillian Banks: A Dynamic Slack Approach. European Journal of Operational Research, 240(1), 258-268. Wernerfelt, B. (1984). A Resource Based View of the Firm. Strategic Management Journal, 5(2), 171-180. Xu, Z. (2007). The Structure of Ownership and Corporate Governance. The Case of Chinese Listed Companies. Retrieved March 13, 2017, from http://bura.brunel.ac.uk/handle/2438/5357 Zeitun, R. (2009). Ownership structure, corporate performance and failure: evidence from panel data of emerging market the case of Jordan. Corporate Ownership and Control, 6(4), 96–114.
Published
2018-03-15
How to Cite
John, A. T., & Ogechukwu, O. L. (2018). Corporate Governance and Financial Distress in the Banking Industry: Nigerian Experience. Journal of Economics and Behavioral Studies, 10(1(J), 182-193. https://doi.org/10.22610/jebs.v10i1(J).2101
Issue
Section
Research Paper
Copyright (c) 2018 Ayoola Tajudeen John, Obokoh Lawrence Ogechukwu
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
