Conceptualizing Corporate Governance Practices on Financial Performance

Abstract

This paper highlighted some of the lessons from the corporate collapses and losses in the last few decades have highlighted the role corporate governance practices can play in maintaining viable entities and in safeguarding stakeholders’ interests. Most of the corporate failures that were recorded in industries in Nigerian are examples of the risks posed by corporate governance breakdowns. It was proved that traditional governance structure could not stop expropriation of insiders and was a source of inefficiency. Due to these scandals’ faith of the investors on capital market was shaken. As a result, regulatory authorities around the world made it compulsory for corporate sector to comply with the code of best corporate governance practices to promote the transparency, accountability and fairness for all stakeholders.