Corporate Governance Breach: An Overview of the Owner-Manager Agency Problem in the Nigerian Banking Industry

Abubakar Sadiq Kasum () and Oyebola Fatima Etudaiye-Muthar
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Abubakar Sadiq Kasum: University of Ilorin
Oyebola Fatima Etudaiye-Muthar: University of Ilorin

Chapter Chapter 10 in Corporate Governance, 2014, pp 187-196 from Springer

Abstract: Abstract The effects of a breakdown in the principal/agent relationship in the Nigerian financial services industry, especially in the banking sector, cannot be overemphasized. The required alert is due to the fact that this type of industry requires that there must be trust between the principal and the agent who is making decisions on behalf of the principal’s financial investment in the business environment. This paper analyses the agency problem that surfaced in the Nigerian banking sector, following the recapitalization exercise that took place in the industry in 2006. The study found that, to a large extent, the breakdown in the corporate governance code was a major cause of the crisis. The paper also examines the various ways the regulatory agencies responded to the problem and the measures that are being instituted to forestall a reoccurrence.

Keywords: Corporate Governance; Information Asymmetry; Chief Executive Officer; Agency Theory; Agency Problem (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-45167-6_10

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DOI: 10.1007/978-3-642-45167-6_10

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