IIARD International Institute of Academic Research and Development

Journal of Business and African Economy (JBAE )

E-ISSN 2545-5281
P-ISSN 2695-2238
VOL. 8 NO. 1 2022

---

Corporate Governance and Unemployment in the Banking Sector: The Nigerian Trajectory

Odey, Ferdinand Ite, Ph.D Nwafor, Jude Uchenna, Ph.D

---

Abstract

In Nigeria, there are a number of factors that constitute fundamental constraints to efficient employment generation among the teeming and unemployed youth, and the objectives of employment policies mostly in the banking sector have been marred by lack of good corporate governance. The main purpose of this study is to ascertain the nexus between corporate governance and unemployment in the Nigerian banking sector. The data for the study was sourced from the Central Bank of Nigeria statistical bulletin, National Bureau of Statistics and Nigerian Stock Exchange. The annual rate of unemployment was used as the dependent variable while various indices of corporate governance were used as independent variables. The bound testing approach indicates that a long run relationship exists among the variables in the estimated model. The study recommends among other things that; the development of any nation is tied to the quantum of youth that are gainfully engaged in productive activities to create goods and services that satisfies human wants, thereby reducing the number of industrious young men and women that wallows in poverty and misery. Hence, the inculcation of good corporate governance in the day-to-day activities of firms is identified as a surest way for countries especially developing economies to sustain the level of employment in the banking system. There should be transparency in the implementation of codes of corporate governance so that the stakeholders including employees can effectively judge whether their interests are being served or not, and the government should establish institute of Corporate Governance for teaching and promoting good corporate governance that will obl1ige firms to embrace corporate social responsibilities through the employment of indigenous job seekers thereby reducing the army of unemployed youth in the country.

keywords:

Corporate governance, unemployment, banking sector, stakeholders, Nigeria

---

References:

Abdullah, H. & Valentine, B. (2009). Fundamental and ethical theories of corporate governance.
Middle Eastern Finance and Economics, 4, 88-96.

Abdullatif, M. & Kawuq,S. (2015). The role of internal auditing in risk management: Evidence
from banks in Jordan. Journal of Economic and Administrative Sciences, 311, 30-50.

Adam, J.A. (2005). Capital market and economic growth in Nigeria. Nigeria Securities Market
Journal of Securities and Exchange Commission, 2(1), 12-16.

Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. S. (2020). The impact of
corporate governance on financial performance of Indian and GCC listed firms: An
empirical investigation. Research in International Business and Finance, 51 (2), 22-34.

Central Bank of Nigeria (2021). Statistical bulletin. Abuja: CBN Press.

Donaldson, T.& Preston, L. E. (2005). The stakeholder theory of the corporation: Concepts,
evidence, and implications. Academy of Management Review, 20(1).

Effiong, C. E., Odey, F. I. & Nwafor, J. U. (2019). Globalization, foreign direct investment
and industrial sector performance nexus in Nigeria. Economic Journal of Social Sciences
and Management Research, 5(2), 55-66.

Gwala, R. S. & Mashau, P. (2022). Corporate governance and its impact on organizational
performance in the fourth industrial revolution: A systematic literature review. Corporate
Governance and Organizational Behavior Review, 6(1), 98–114.

Jones I. & Politt, M. (2003). Understanding how issues in corporate governance develop:
Cadbury report to HIGGS review ESRC Centre for Business Research, University of
Cambridge Working Paper No. 277.

Kyereboah-Coleman, A. (2007). Corporate governance and firm performance in Africa: A
dynamic panel data analysis. International Conference on Corporate Governance in
Emerging Markets, Turkey.

Mallin, C.A. (2019). Owners and stakeholders. In corporate governance. 6th Ed., Oxford
University Press, Oxford, 81-98.

Ndekwu, E. C. (2013). An analysis of the monetary policy transmission mechanism and the real
economy in Nigeria. Central Bank of Nigeria Occasional Papers No. 43.

Ndiyo, N. A. (2005). Fundamentals of research in behavioural sciences and humanities.
Calabar: Wusen Publishers.

Omankhanlen, A. E. & Taiwo, J. N. (2013). The role of corporate governance in the growth of
Nigerian banks. Journal of Business Law and Ethics, 1(1), 44-56.
Oso, L. & Semiu, B. (2012). The concept and practice of corporate governance in Nigeria: The
need for publication and effective communication. Journal of Communication, 3(1), 1-16.

Oti, P. A. & Odey, F. I. (2017). Analysis of internally generated revenue and capital
expenditure utilization in Cross River State, Nigeria. International Journal of
Development and Economic Sustainability, 6 (1) 9-18.

Shleifer, A. & Vishny, R. W. (2003). Stock market driven acquisitions. Journal of Financial
Economics, 70(3), 295-311.

DOWNLOAD PDF

---

Back