ABSTRACT
The study examined benefits and problems of corporate governance in organizations. The study specifically aimed at finding out whether good corporate governance leads to increased shareholders value; ascertaining if corporate governance practices prevent corporate failure, examining whether organizations that engage in Corporate Governance practices are better than those that do not, enumerating the benefits enjoyed by organisations that engage in Corporate Governance practices and identifying the risks and challenges faced by organisations that engage Corporate Governance practices in their operations.
The population of the study comprises all senior staff of University of Benin Teaching Hospital and Niger Delta Development Commission in Benin City, Edo State, Nigeria. Eighty (80) copies of the questionnaires were distributed to staffs of University of Benin Teaching Hospital and Niger Delta Development Commission in Benin City based on convenient sampling technique. Out of this number, 73 copies of the questionnaire were completed. This represents a combined response rate of 91.25 percent. Data obtained were coded and analyzed using percentage, frequency distributions and tables.
The findings of the study reveal that good corporate governance leads to increased shareholders value as board members understood their basic responsibilities accordingly as this will help prevent situations that will warrant conflict of interest as far as cooperate governance is concerned. Corporate governance practices prevent corporate failure as companies employed and maintained the services of professional internal and external auditors to enhance independence in terms of judgement for efficient operation to sustain the principles of Cooperate Governance for the interest of the shareholders. The challenges which public organisations face in the practice of corporate governance are basically conflicts of interest issues which are handle by ensuring that the composition of the board of directors is a mixed one as this helps to promote unbiased approach basically for the purpose of independence as it relates to decision making to enhance shareholders’ interest. The benefits enjoyed by organisations that engage in Corporate Governance practices are numerous and they include organised responsibility, independence of board members, well-decided remuneration of senior management, disclosure of interest by top management staff, well established system to raise concerns, opportunities for shareholders to vote at the General Meetings.
Based on these findings, we recommend that top management should ensure compliance of corporate governance principles and sustain the interest of the shareholders, bureaucrats should be re-oriented with emphasis on the need for them to discharge their primary duties and roles accordingly through adequate training and education to enhance the laid down goals and objectives of the organisation. In addition, the role of the government is highly important to make the operation of Corporate Governance effective. Laid down policies, rules and regulations with consequences of non-compliance with the principles alongside disciplinary action should be stated to enforce compliance. Likewise, Government should strengthen the powers of the Board of Directors and the top management so that they will be encouraged to put in their best to enhance the interest of the investors as it were hence, promoting Corporate Governance Principles effectively
