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Corporate Governance and Performance of Business Organizations in Nigeria. (A Case Study of MTN Nigeria, Ilorin)

The study investigates the impact of corporate governance on the performance of MTN Nigeria in Ilorin, revealing that effective corporate governance significantly enhances organizational performance. It emphasizes the importance of communication, remuneration, and work ethics in fostering employee satisfaction and commitment, which in turn improves corporate reputation. The research recommends prioritizing corporate governance practices to ensure transparency and accountability, ultimately benefiting the organization and its stakeholders.

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0% found this document useful (0 votes)
47 views59 pages

Corporate Governance and Performance of Business Organizations in Nigeria. (A Case Study of MTN Nigeria, Ilorin)

The study investigates the impact of corporate governance on the performance of MTN Nigeria in Ilorin, revealing that effective corporate governance significantly enhances organizational performance. It emphasizes the importance of communication, remuneration, and work ethics in fostering employee satisfaction and commitment, which in turn improves corporate reputation. The research recommends prioritizing corporate governance practices to ensure transparency and accountability, ultimately benefiting the organization and its stakeholders.

Uploaded by

It'z Kissyface
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CORPORATE GOVERNANCE AND PERFORMANCE OF BUSINESS

ORGANIZATIONS IN NIGERIA.

(A case Study of MTN Nigeria, Ilorin)

i
ABSTRACT

The study titled corporate governance and organizational performance was an attempt to

explore the implications of corporate governance on organizational performance of the

selected MTN Nigeria in Ilorin. The study was a survey-type of research that employed

compare mean in an attempt to identify the direction and the magnitude of the impact

variables under investigation. The data were analyzed with t-test. In order to solve the

envisaged problem in this research, three hypotheses were formulated. The findings reveal

that corporate governance has significant impact on the performance of the organization; the

study concludes that effective corporate governance is the fulcrum upon which organizational

performance revolves. In light of the aforementioned, the study recommends that MTN

Nigeria should prioritize corporate governance practice in order to improve their overall

performance and reputation. This however, guarantees transparency and accountability which

in turn, enhances organizational performance. .

ii
CHAPTER ONE

1.1 Background to the Study

The term “Corporate Governance” is the interaction between shareholders, board of directors,

and company’s management in shaping corporation’s performance and the way it is

proceeding towards.

Corporate Governance is the system of rules, practices, and processes by which a company is

directed and controlled. The organization for economic corporation (2004), defined corporate

governance as a mechanism of bringing into line the interest of investors and managers in

order to ensure that firms are operated to benefit investors. That is, corporate governance is a

mechanism that leads to a healthy and no conflict between the owners and the manager in an

organization.

Corporate Governance as a concept can be viewed from two perspective (Oluyemi, 2007). A

narrow one in which it is merely being concerned with the structure within which a corporate

entity or enterprise receive its basic orientation and direction. And a broad perspective in

which it is regarded as being the heart of both a market economy and a democratic society.

A narrow perspective views the subject as a mechanism which shareholders are assured that

managers would act in their best interest. Whereas the broad view of corporate governance

refers to the process that seeks to direct and control the affair of an organization so as to

protect the interest of all stakeholders in a balanced manner. This process is under-pinned by

the principle of openness, integrity and accountability.

1
The concept of corporate governance includes both social and institutional aspect. That is,

corporate governance is all about balancing individual and societal goals, as well as,

economic and social goal. Corporate governance ensures that executive management is

running the organization in the right direction and also being run well. Good corporate

governance leads to ethical business practice which deals with way a company more

financially stable and makes it more favorable to its shareholders.

Corporate Governance ensures that business have appropriate decision making processes and

control in places so that the interest of all stakeholders (Shareholders, employees, suppliers,

customers and the community) are balance. According to Dzingai and Michael (2017), the

principles of corporate governance is to support an approach that considers and balance the

legitimate and reasonable needs, interests, and expectation of its stakeholders in an inclusive,

ethical, and sustainable manner as part of its decision making. Good quality, ethical decision

making builds sustainable business and enables them to create long term value more

effectively.

1.2 Statement of the Problem

At present the idea of having adopted corporate governance practices are neglected in the

corporate sector increase in performance in different working place has been on decline of

recent. The major reason behind this is the increase in isolation of corporate governance. This

has led to low organizational performance.

2
The researcher’s interest is to investigate the effect of corporate governance on increase in

organizational performance of MTN Nigeria corporate company, Ilorin.

More importantly, both public and private are laying more emphasis on the decline of

increase in productivity and solution are being sought as to improve organizational

performance.

1.3 Research Questions

For the purpose of the research, the following questions are formulate to assist the researcher

identify the impact corporate governance on organizational performance.

i. To what extent can effective communication affect employee’s satisfaction?

ii. To what extent can remuneration affect employees’ commitment?

iii. To what extent can work ethics affect corporate reputation?

1.4 Research Objectives

The main objective of this study is to examine the Impact of Corporate Governance on

Organizational Performance. The specific objectives are to:

i. To determine the impact of effective communication on employees’ satisfaction.

ii. To examine the effect of remuneration on employees’ commitment.

iii. To evaluate the effect of work ethics on corporate reputation.

3
1.5 Research Hypothesis

The following are the hypothesis to be tested in the course of this research work:

H01: Effective communication has no significant effect on employees’ commitment

H02: Remuneration has no significant employees’ commitment.

H03: Work ethics has no significant impact on corporate reputation.

1.6 Significance of the Study

The importance of this study is to help shareholders, board of directors, stakeholder,

managers of both public and private company and organization to understand the need for

corporate governance and its impact on organizational performance. It will also be useful to

both the management and employees of MTN Nigeria Telecommunication Company in

Kwara State, as a reference material.

Shareholders, board members, and managers who would study through this research work

would be enlightened more on the need for corporate governance and how to create a useful

and enabling environment that makes it impact significantly on organizational performance.

1.7 Scope of the Study


The scope of this study will cover the Impact of Corporate Governance on Organizational

Performance with reference to MTN Nigeria Telecommunication Company, Ilorin, Kwara

State.

4
Life being what it is, one is bound to face a lot of problem in writing a research project of this

nature, problems encountered include time constraint, the researcher exhausted most of her

time going up and down in search of relevant data. The period coverd is from December to

July i.e. Eight (8) months. The period coincided with the writer’s time of lecturer that mean

less time had to devote to this work.

Financial was also encountered as the researcher as limited financial resources that act of

writing a meaningful project is very exorbitant. There was problem of uncooperative on the

part of respondent.

The researcher also encountered the problem of scarcity of dating to the fact that only few

textbook were available in the subject matter.

1.8 Definition of Terms

This is the explanation of some technical terms as used in the sstudy.

1. Corporate: this means formed into an association and endowed by law with the right

and liabilities of an individual.

2. Corporate Governance: This a system that guides the conduct of the people within an

organization, as well as the direction of the organization itself.

3. Organizational Performance: is the success or fulfillment of organization at the end of

the program or project as it is intended.

4. Employees Satisfaction: this is the extent to which employees are happy or content with

their jobs and work environment.

5
5. Employees Commitment: is an emotional attachment to and involvement with an

organization. It also refers to as a bond between the employees and the organization

such that the employee wants to continue serving the organization and helping it

achieve its objective.

6. Work Ethic: is a belief that work and diligence have a moral benefit and an inherent

ability, virtue or value to strengthen character and individual abilities.

7. Corporate Reputation: is the overall estimation in which an organization is held by it

external and internal stakeholders based on it post actions and probability of its future

behavior.

8. Board of Director: this is a group of people who represent the interest of a company’s

shareholder.

9. Stakeholder: is a party that has an interest in a company and can either affect or be

affected by the business.

10. Share holder: is a person who own shares in a company and therefore gets part of the

company’s profit and the right to vote on how the company is controlled.

6
CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

Essentially, this chapter deals with the review of available relevant academic literatures on

the project topic.

This chapter is expected to cover various way by which organization are been govern and

control the performance of its employees and corporate techniques that the manager adopt in

order to carry out its duties successfully and efficiently.

Many scholars have looked at the performance of an organization would never fail to mention

of corporate governance. The quality of corporate governance structure of an organization

affects its performance, corporate governance is perceived to influence firm financing or

decision related to capital structure which influence the firm’s performance. Corporate

governance with weak structures leads to poor financial performance and contribute to

macroeconomic crises.

The concept of corporate governance is a fundamental in the achievement of the economic

growth and efficiency because top level management considers it as a device for the

reduction of misconduct or mismanagement in the management of an organization. However

some of definitions of corporate governance are generally classified into value creation and

value protection which is accomplished through corporate governance (Heenetigala, 2011).

According to Heenetigala (2011), value creation indicates that developing the long term goals
7
form sustainable performance by focusing on the shareholders of the company. Value

protection based on accountability of managers and protects the interest of both shareholders

and stakeholders.

According to Organization for Economic Cooperation and Development (OECD) (2004),

corporate governance provides the structure through which objectives of a company are set

and means for attaining those objective, leading to higher performance. Corporate

governance has been linked with negative firm performance. For instance: Adams and

Mehran (2011) reported no connection between corporate governance and organizational

performance.

Concept of Organization performance is an important aspect which has been using in all areas

of business researches and it is difficult to have general definition and measurement by

reason of continuously expanding their boundaries. Akal (1992) defines that “Organizational

performance is the evaluation of all the efforts devoted to achieving the business goals. Most

of the researchers argue that definition of organizational performance is incorporated with

efficiency and effectiveness. Santo & Brito (2012) state “Business performance or Firm

performance is a subset of organizational effectiveness that covers operational and financial

outcomes.”

Relationship between corporate governance and organizational performance is still a

fundamental issue for the researchers. Brown and Caylor (2004), found a positive relationship

between governance and performance. Among the measures of performance where return of

equity, profit margin and sales growth by which a conclusion was drawn that good
8
governance (based on factors) is related to good performance that vast majority of the time.

Fooladi and Nikzad (2011), who also adopted measures of return on equity and return on

assets in investigating the relationship between performance and CEO duality. Some scholars

have identified as positive relationship, and some scholars have failed to show a positive

association. For this reason, this study is vital to find what kind of association that

telecommunication company has with corporate governance.

2.1 Conceptual Framework

Based on literature survey following conceptual framework was develop. This conceptual

frame work establishes link between corporate governance and organizational performance.

Effective
Communication

Source: Researcher’s Computation 2025

2.1.1 Corporate Governance

9
Etete (2010), sees corporate governance often used by corporate entities to describe the

manner in which board of directors or their equivalents direct the affair (structures of

authority and collaboration deployed in allocating resources and coordinate or control

activity) of the corporation and the laws and culture that guides them.

The corporate governance structure specifies the distribution of rights and responsibilities

among different particular different participants in the organization, such as, the board,

managers, shareholders and other stakeholders, and spell out the rules and procedures for

making decision on corporate affairs. By doing this, it also provided the structures through

which the company objectives are set and the means of attaining those objectives and

monitoring performance.

Sub-variables of corporate governance are:

1. Effective Communication

2. Remuneration

3. Work Ethics

Effective Communication

This is the process of exchanging ideas, thoughts, opinions, knowledge, and data so that the

message is received and understand with clarity and purpose. When we communicate

effectively both the sender and receiver feel satisfied.

Communication occurs in many forms, including verbal and non-verbal, written, visual, and

listening. It can occur in person, on the internet (on forum, social media and websites), over
10
the phone (through apps, calls and video), or by mail. For communication to be effective, it

must be clear, correct, complete, concise and compassionate.

Benefit of Effective Communication

1. Manage employees and built teams.

2. Grow your organization more rapidly and retain employees.

3. Benefit from enhance creativity and innovation.

4. Build strong relationship and attract more opportunities for you or your organization.

Remuneration

One of the most important elements of human resource management is compensation or

remuneration. Therefore, it is necessary to frame sound policies and practices for employee

compensation.

Remuneration is the compensation an employee receives in return for his or her contribution

to the organization. It also concerned with needs, motivation and rewards. Managers

therefore, analyze and interpret the needs of their employees so that reward can be

individually designed to satisfy their need. Remuneration is classified into two and they are:

1. Direct Remuneration

2. Indirect Remuneration

Direct Remuneration

11
Direct Remuneration typically refers to any sort of compensation that comes as a straight

forward financial gain for employees, including salary, allowances for travel and other

activities and bonuses.

Indirect Remuneration

Indirect Remuneration provides a benefit for someone but may be less straight forward.

These can include the potential for overtime pay, benefits for retirement and more flexible

schedule for employees.

Therefore, formulation and administration of sound remuneration policy is must to attract

excellent personnel and retain them in an organization. The basic purpose of sound

remuneration policy is to establish and maintain an equitable wage and salary structure.

Work Ethics

Work Ethics refer to a specific set of moral and legal guidelines that organization may abide

by. This guideline typically influences the way employees and customers alike interact with

an organization.

Work Ethics are an incredibly important of forming a successful organization with satisfied

and loyal team members. High ethical standards can help stakeholders, like employees,

investors, customers and other individual involved with work operations feel that the

organization is safeguarding their interest.

12
When an employee is treated fairly and understands an organization’s commitment to

accountability and environmental sustainability, they are typically less likely to commit

environmentally harmful behavior that may contribute negatively to an organization public

image. With this, works ethics help establish a reciprocal relationship that benefits

organization at large and the individuals influenced by organizational operation.

Benefits of Using Ethics in the Workplace

There are various benefits of using ethics in the workplace leaders, stakeholders and the

general public alike can experience significant improvements when organizations hold

themselves to high ethical standard. Here are a few of the primary benefits result from

employing ethics in a workplace:

i. Employees Satisfaction

ii. Improve workplace culture

iii. Maintaining legal compliance

iv. Improve public reputation.

2.1.2 Organizational Performance

According to Jones & George (2003), Organizational performance is a measure of how

efficiently and how effectively managers use resources to satisfy customers and achieve

organizational goals. Efficiency is a measure of how well or how productively resources are

used to achieve a goal. Thus, effectiveness is a measure of the appropriateness of the goal that

managers have selected for the organization to achieve those goals.

13
Therefore, when organizations have satisfied the interests of all stakeholders, owners,

managements, employees, customers, suppliers, and general public; the they can be measured

as successful organization.

Sub-variables of organization performance are:

1. Employees’ Satisfaction

2. Employees’ Commitment

3. Corporate Reputation

Employees’ Satisfaction

Employees’ Satisfaction is the level of happiness or contentment an employee feels for

his/her job. Employees’ Satisfaction is an essential aspect of any business organization. When

employees are happy and satisfied with the management and work culture, they put their best

effort to make the company successful. When employees’ needs are met they develop a

positive outlook towards the organization at its goals.

Employees’ Commitment

Employees’ commitment is an emotional attachment to and involvement with an organization

employee commitment is a bond between the employee and the organization such that the

employees want to continue serving the organization and helping it achieve its objectives.

Employees with high organizational commitment improve the organization’s performance by

reducing instances of turnover, absenteeism and improving the quality of service. A

14
committed employee is more compatible with the organization and more productive than

those employees with lower levels of satisfaction, loyalty and responsibility.

Corporate Reputation

Olutoye and Adebayo (2015), define corporate reputation as the perception of an organization

by its stakeholders, which is influenced by the organization’s history, culture, ethical

standard, and behavior as well as the opinions and perception of the employees, customers,

investors, and other stakeholders.

A company’s reputation can impact its ability to attract and retain customers, employees, and

investors and it can also influence the level of trust and confidence the public has in the

company. Therefore maintaining a strong and positive corporate reputation is important for

the success and sustainability of a business.

2.2 Theoretical Framework

This section talks about different author’s view/model of corporate governance.

Micro Theories of Governance: Governance of the Firm and its Managers

Most micro theories of governance come under the perspective of efficiency. The function of

a governance system is to contribute to the efficiency of the firm.

15
Thus, mechanism such as the board of directors or hostile takeover bids would, by ensuring a

better discipline of the managers, contribute to the increase of efficiency of the firm that

creates more value. However, if most of the theories retain this criterion, they attribute it

differing contents.

The different micro theories also focus on a particular interpretation of economic Darwinism,

leading to the creation of a relationship between selection through inter-firm competition and

the efficiency of the governance systems. According to the principle of natural selection

adapted to the field of governance, only efficient systems that ensure the regulation of firms

leading to the creation of sustainable value, survive on the long term.

Consequently, the systems observed would be considered efficient. This association between

survival and efficiency, contested by certain modern biological works (Acemoglu and Others,

2001).

Agency Theory

Agency theory suggests that the company can be viewed as relationship of contracts between

company executives or managers and shareholders, and it has its roots in economic theory

(Jensen & Meckling, 1976). Principals who are the owners of the company hire the agents to

do the work. Work is delegated by the owners who are the shareholders, to the directors or

managers, who are the shareholders’ agents (Clarke, 2004). Daily, Dalton and Canella (2003)

give prominence to two issues and point out that the company is reduced to two major

players, the management team and shareholders. Self-interest by management is one issue

that has always been a source of conflict as a result of lack of congruence between the

16
aspirations of the principals and the agents’ pursuits (Bhimani, 2008). The theory basically

separates ownership and control, although it does very little to eradicate misconduct.

The Shareholder Theory of Governance

This theory originated in an analysis of Jensen and Meckling (1976) that focused on two

main objectives. The first ambitious objective was to propose a contractual theory of the firm

seen as a team of productive.

Inputs (Alchian and Demsetz,1972) Inspired by the theory of property rights, and focusing on

the agency relationship concept. The second more limited objective was to illustrate the

explanatory power of this theory with regard to the problem of the capital structure of the

firm.

If in the beginning, Jensen and Meckling considered the firm as a nexus of contracts,

associating the firm and the entire group of resource contributors (the team of productive

inputs), their limited objective of explaining the capital structure led them to construct a more

simplified model taking into consideration only two agency relationships. The first linked the

manager to the shareholders and the second linked the firm (represented by the managers and

shareholders) to the financial creditors.

This initial modeling, that gave priority placement to the analysis of the relationship between

the manager entrepreneur opening his capital and the new shareholders playing the role of

“Principal” and the manager that of the “agent” was to lead to the shareholder approach that

still dominates normative research and reflections today.

Traditionally associated with the legal approach to ownership, presumed (Amable and Petit,

1999) to recognize only the shareholders as the owners or the only “residual” (Aoki, 1980)
17
claimants. It attributes the unique role of “security” of the financial investment to the

government. However, the shareholder model is most often based on the normative branch of

the agency-theory-referred to as “principal-agent” claiming through hypotheses, in its

dominant model, that the shareholders are the only principals and the managers are the only

agents.

Moreover, it is possible to justify the shareholder conform to the positive branch of the

agency theory resulting from the analysis of Jensen and Meckling. In accordance with the

natural selection principle, we need only maintain that organizational practices have emerged

in endogenous fashion reinforcing the probability of survival of the firms that adopted them.

However, the question is now to justify this argument by attempting to identify the sources of

the advantage granted.

Ethics Theory

Ethical theory is a build-up on the concept of ethics in general. The term ethics comes from

the Greek word “ethos” meaning morals. Morality is the whole of opinions, decisions and

actions with which people express what they think is good or right. Business ethics is a study

of business activities, decisions and situations where business wrongs and rights are

addressed. Schofield (2006) notes that ethical theory sometimes focuses not on actions but

majorly on consequences. The consequence of actions is measured against values such as

happiness, welfare, high productivity and expansion. The cardinal point in this theory is that,

it is essential to give the greatest happiness to the greatest number of people. Crane and

Matten (2007) observed that business ethics help to identify benefits and problems associated

with ethical issues within the firm. The agents should make all efforts to ensure that
18
principals have satisfactory values with regards to their investment. The actions of the agents

will be adjudged morally right in the process of running the corporations on behalf of the

owners if the latter’s interest is well represented whereas it will be adjudged wrong if their

actions inflict pain on the interest of the principals. Closely related to the ethics theory is

Corporate Social Responsibility (CSR) which advocates for organizations and corporations to

have an obligation to seek the interest of customers, employees, shareholders, communities

and ecological considerations in all aspects of their operations. Jimi (2008) observes that

presently, CSR is a family of concepts dealing with corporate philanthropy, corporate

citizenship, community relations, community advocacy, corporate governance, accountability

and transparency, corporate competence, corporate ethics, employee relations, human rights

among other aspects. Corporates continually seek to grow their brands from all possible

angles. Areas of focus include education, health, environment and the needy. Investment in

these areas is usually in essential books, computerization of schools, giving medical

equipment and building clinics, planting trees, and helping the needy through empowerment

initiatives. The political front has its fair share of influence. The political theory, says politics

can affect a firm in many ways, it can determine ownership, size, production trend, accessing

capital, employees’ conduct and even how authority is distributed inside the firm. (Roe,

2003). The organizational operational dynamics of how managers and employees relate to

each is also influenced. Authority distribution is a key and can be aligned to the political

forces exerted on the firm. Chinese penetration into Africa is appropriate example in this

regard.

Empirical Review
19
The Empirical Evidence Early studies on governance and organizational performance,

particularly prior to the start of this century, sought to establish the link between various

individual governance elements and financial performance measured by various performance

indicators with particular focus on the Anglo-Saxon economies, especially the U.S. Although

there are almost an infinite number of governance elements, the most examined issues in the

governance-performance literature appear to be board independence, separation of the roles

of CEO and Chair and board size. Studies by Hermalin and Weisbach (1991), Klein (1998)

and Bhagat and Black (2002) did not find any robust relationship between board

independence and firm performance. Lawrence and Stapledon (1999) investigated the Top-

100 Australian listed firms in 1995 and found no consistent association between independent

directors and firm value.

Ozuomba (2012) carried out a study on the impact of corporate governance on firm

performance: Empirical study in Vietnam. This research is conducted to examine the

relationship between corporate governance and firm performance. Corporate governance is

proxied by a set of variable. i.e. dual role of the CEO, board independence and ownership

concentration while firm performance is measured by return on asset (ROA), return on equity

(ROE). They used the feasible generalized least squares (FGLS) on the dataset of 177 listed

companies in Vietnam for the period of 5 years, from 2008 to 2012, the findings of this study

indicate multiple effects of corporate governance on firm performance first, duality role of

the CEO is positively correlated with firm performance. Secondly there is a structural change

in relation between managerial ownership and firm performance. Thirdly, board

20
independence has opposite impacts on firm performance. Finally, there is no significant effect

between corporate governance and increase in productivity.

Ming-cheng, Hsin-chiang, I-cheng in and Chun-fenglai (2004) researched on the effects of

corporate governance on firm performance. The main purpose of their study is to examine the

impact of the corporate governance mechanism on firm performance. The variables,

employed in this study to measure firm performance, include return on assets, stock return

and Tobin’s Q. Regression analysis was used to resolve the data collected for this study and

the results indicate that firm performance is in negative and significant relation to board size,

CEO duality, stock pledge ratio and deviation between voting right and cash flow right, on

the other hand, firm performance is in positive and significance relation to board

independence and insider ownership.

The literature provides evidence that the relationship between managerial ownership and firm

performance is non-linear (Morck, Shleifer & Vishny 1988; Welch 2003; Li et al. 2007).

With respect to the link between CEO remuneration and firm performance, most of these

studies concluded that these variables are not related. One possible argument for this lack of

relationship is that a firm’s corporate governance is a composite function of many

governance factors. Therefore, assessing the extent of the firm’s corporate governance

requires taking into account all of the variables that make up the firm’s overall corporate

governance system. Since the start of this century, researchers have started using a number of

governance attributes in combination (e.g. broad-based index) to proxy the firm’s governance

(Love, 2012).

21
Tek (2013) Review empirical evidence on the link between compliance with governance of

best practice and firms operating results. This study provides robust evidence in support of

the agency theory argument that corporate governance matters for a firm’s operating

performance using the corporate governance ratings as the governance proxy from Horwath

2006 corporate governance report.

The researcher examine 60 sample firms to reveal that a firms governance is positively and

significantly related to firm performance as measured by return on equity, earning yield and

return on assets. This study extends the findings of these two reports which found a

disturbing trend in the corporate governance practice of Australian mid-cap companies both a

decrease in companies with excellent corporate governance and an increase in companies

with significant corporate governance deficiencies to qualify the relationship between

corporate governance and the performance of firms in Vietnam. In this study, corporate

governance is considered to consist of the following elements:

(i) The size of the board

(ii) The presence of female board members

(iii) The duality of the CEO

(iv) The education level of the board

(v) The ownership of the board

(vi) The presence of independent (outside) directors

(vii) The compensation of the board.

The researchers used flexible generalized least square (EGLS) technique on 77 listed firms

trading over the period from 2006 to 2011. The findings of their study indicated that elements
22
of corporate governance such as the presence of female board members, the duality of the

(CEO, the working experience of board members and the compensation of board members

have positive effects on the performance of firms, as measured by the return on asset (ROA).

The study also revealed that ownership of board members has a non-linear relationship with a

firm’s performance.

23
CHAPTER THREE

METHODOLOGY

3.1 Introduction

This chapter provides how this study has been conducted to examine the impact of Corporate

Government on Organizational Performance in MTN Nigeria Company. The chapter

describes the method, system, tools and procedures which the researcher employed in data

collection and for the analysis of data for purpose of this study. Thus, research methods

clearly explain the process undertaken in the collection of relevant information and analysis

of the data collected. This is because the success of the study depends a lot on the reliability

and validity of data collection.

3.2. Research Design

For this study, it was considered more appropriate ant convenient to used survey design. The

researcher used mainly interview and questionnaire as measuring instruments. Primary and

secondary data were employed. The researcher elicits information for the study via wide

range of research instruments. Thus, the researcher used questionnaire and physical

observation to generate such information.

3.3. Population of the Study

There are many service provides in Kwara State that makes use of Corporate Governance

operations but only one was contacted to participate in the survey. The firm is MTN Nigeria,

Ilorin. The management and administrative department were contacted because of their

relevance to the study. The population of the study is therefore made up of all employees of

MTN Nigeria, Ilorin, which is Ninety Six (96) as indicated by the company.
24
3.4. Sample Size and Sampling Techniques

Simple random sampling techniques were adopted for this study because it gives equal

chances to all the people being chosen and it’s not being bias. However, the respondent are

only staff of MTN Nigeria, Ilorin, Kwara State.

The target population study aims at sampling size of 50 employees of MTN Nigeria, Ilorin,

Kwara State, covering the sample frames of the organizational performance sector which

include the managers, the staff of Administrative, Operation and Maintenance, Accounting

and Finance, Engineering, Commercial and Information Department.

Sampling Techniques

Purposive sampling techniques were adopted in the research work; this will be choosing

accidentally as the entire employees of the companies under study were being examined for

the purpose.

3.4 Methods of Data Collection

The methods of data collection was survey method based on the topic of research, the

researcher administered questionnaires to the selected sample in order to extract detailed

information on the topic and clarity complex questions. The source of data for this study was

purely primary in which data was obtained strictly through a well-structured and self-

administered questionnaire. The questionnaire was divided into sections (Section A and B).

Section A consists of items on bio-data of the respondents while section B consists of

operational item relating to the research work. The likert scale was used to structure the

questions ranges from 5 (Strongly agree) to (Strongly disagree). This scale was chosen

because the data collected through it was easy to code and simple to analyze clear and simple
25
words were used to construct the questions, to make them easier for the respondent to

understand and answer.

3.6 Instrument of Data Collection

INTERVIEW: This is a method of data collection instrument which involves a face to face

contact or interaction between the two parties involves. This enable the researcher to interact

directly with those personnel concerned with the entire information.

This was used in addition to questionnaire method to collect more information which were

mire compliable and cannot be effectively included in the questionnaire.

OBSERVATION: This is the method whereby the researcher was able to share in live and

activities of the events being studied during the research work. This give researcher the

opportunity to view personnel on duty and to watch the collective bargaining, it enhances

sound labour management relations in the society.

3.7. Methods of Data Analysis

The descriptive statistic, Simple linear Regression, correlation is used to test the hypotheses.

The statistical tools were selected as a result of the study and hypotheses formulated. The

study was casual design, studying the effect of an independent variable (e-marketing) will

have a dependent variable (Small and medium enterprises.)

Simpler Linear Regression was used to test hypothesis and to achieve objective. This was to

examine the effect of variables. i.e. independent (e-marketing) has no dependent variable

(profit) and the choice of the simple linear regression and not multiple linear regression for

this was because the predictor which was dependent variable is not more than one.

26
The choice of correlation was to test the hypothesis on (H 01) and to achieve the objective one

respectively, to examine if the two variables i.e dependent and independent variable are

correlated.

Therefore, it can be said that with the help of these methods, the researcher will analyze the

data in order to answer the research questions and test the acceptability of the hypotheses.

However, tabulation and percentage method were used in the presentation and analysis of

data.

3.8. Profile of MTN Nigeria

MTN Nigeria is the Nigerian subsidiary of MTN group, and it is one of the leading

Telecommunication Companies in Nigeria. MTN Nigeria was established in 2001, after MTN

group acquired the Nigerian mobile operator, MTEL.

MTN Nigeria launched its commercial services in August 2001 and quickly grew to become

one of the largest mobile operators in Nigeria. The company’s growth was driven by its

strong focus on network quality customer service, and innovative product offering.

In 2006, MTN Nigeria became the first G.S.M. Network to make a call following the globally

acclaimed Nigeria G.S.M. auction conducted by the Nigerian Communication Commission

(NCC). Since then, MTN Nigeria has continued to expand its network coverage and product

offering.

In 2015, the Nigeria Communication Commission imposed a $5.2billion fine on MTN

Nigeria for non-compliance with SIM registration rule. After negotiations, the fine was

eventually reduced to $1.7billion, and MTN Nigeria agreed to pay the amount over a period

of three years.
27
Despite this set back, MTN Nigeria has continued to grow and expand its operations in

Nigeria. As of 2021, MTN Nigeria had over 78 million subscriber, making it the largest

telecommunications company in Nigeria. The company offers a wide range of mobile

network services, including voice, data, and digital services, and has played a significant role

in driving the growth of Nigeria’s telecommunication industry.

28
CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1. INTRODUCTION

This chapter deals with presentation, analysis and interpretation of data collected from the

field work in MTN Nigeria, Ilorin, Kwara State.

The researcher has made an attempt to analyze and discuss the data from the research

questionnaires one after the other in a logical sequence. Fifty (50) questionnaires are

distributed to the staff of MTN Nigeria, Ilorin all were dully completed and returned back to

the researcher.

4.2. DATA PRESENTATION, ANALYSIS AND INTERPRETATION

The analysis of the responses given by the staff of MTN Nigeria Company is stated thus:

Table 4.2.1: Distribution of Respondent by Gender

OPTION FREQUENCY PERCENTAGE %


Male 35 65
Female 15 35
Total 50 100
Source: Research Survey 2025

The tables 4.2.1 above shows that 35 respondents are male represent 65% while 15

respondents are female represent 35%. This means the statistical shows that there are more

male respondent than female in the organization.

Table 4.2.2: Distribution of Respondent by age

OPTION FREQUENCY PERCENTAGE %


18-30 10 20

29
31-40 20 40
41-50 10 20
51&above 10 20
Total 50 100
Source: Research Survey 2025

The table 4.2.2 shows that to 10 respondents are between 18-30years representing 15%, 20

respondents are between 31-40years represent 40%, 10 respondents are between 41-50 years

representing 20%, while 10 respondents are between 51 and above representing 20%.

Table 4.2.3: Distribution of Respondent by marital status

OPTION FREQUENCY PERCENTAGE %


Single 24 48
Married 26 52
Divorced - -
Total 50 100
Source: Research Survey 2025

The table 4.2.3 above shows that 24 respondent are single representing 48%, 26 respondent

are married representing 52%, while none of the respondent is a divorced or a widow.

Table 4.2.4: Distribution of respondent according to department

OPTION FREQUENCY PERCENTAGE %


Administrative 15 30
Operation and maintenance 10 20
Accounting and Finance 10 20
Engineering 5 10
Commercial 5 10
Information 5 10
Total 50 100
30
Source: Research Survey 2025

The table 4.2.4 above shows that 15 respondents representing 30% are from administrative

department, 10 respondents are from operation and maintenance department representing

20%, 10 respondents are accounting and finance department representing 20%, 5 respondent

are from commercial department representing 10%, 5 respondents are from engineering

department representing 10%, while 5 respondents are from information department

representing 10%.

Table 4.2.5: Distribution of respondent according to educational qualification

OPTION FREQUENCY PERCENTAGE %


WAEC 10 20%
ND/NCE 15 30%
HND/B.Sc 20 40%
M.Sc and above 5 10%
Total 50 100
Source: Research Survey 2025

The table 4.2.5 above tell us that 10 respondents representing 20% are WAEC holders, 15

respondent also representing 30% are ND/NCE holders, 20 respondents representing 40% are

HND/B.Sc., while 10 respondent are M.Sc. holder representing 20%.

Table 4.2.6: Distribution of respondents according to length of service

OPTION FREQUENCY PERCENTAGE %


1-5years 9 18
6-10years 20 40
11-15years 14 28

31
16 and above 7 14
Total 50 100
Source: Research Survey 2025

The table4.2.6 above shows that 9 respondents are between 1-5years representing 18%, 20

respondent are between 6-10years length of service representing 40%, 14 respondents

representing 28% are between 11-15years, while 7 respondents are between 11-15years,

while 7 respondent are between 16years and above of length of service represent 14%.

SECTION B

QUESTION 1: Communication lines among various departments are seen as effective

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 28 56
Agree 17 2
Neutral 1 2
Disagree 4 8
Strongly disagree - -
Total 50 100
Source: Research Survey 2025

From the table above, 28 Respondents representing 56% strongly agree that a high level of

confidence in the effectiveness of communication among department, 17 Respondent

representing 34% agree that communication line among the various department are effective,

4 Respondents representing 8% disagree that communication line among various department

are ineffective, while 1 Respondent representing 2% neither agree nor disagree that

communication line among the various department are effective.

32
This show that majority of respondent perceived the communication lines among various

department as effective, which is a positive indication of strong interdepartmental

communication within the organization.

Question 2: Your Organization values and promotes effective communication among

employees

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 35 70
Agree 5 10
Neutral - -
Disagree 4 8
Strongly disagree 1 2
Total 50 100
Source: Research Survey 2025

From the table above, 35 Respondents representing 70% strongly agree that organization

values and promotes effective communication among employees, 5 Respondents representing

10% agree that organization values and promotes effective communication among

employees, none of the Respondent neither agree nor disagree that organization values and

promotes effective communication among employees, 4 Respondents representing 8%

disagree that organization do not values and promotes effective communication among

employees, while 1 Respondent representing 2% Strongly disagree that organization do not

values and promotes effective communication among employees.

Question 3: Your organization addresses employee’s concerns and feedback in a timely

and effective manner

33
OPTION FREQUENCY PERCENTAGE %
Strongly Agree 30 60
Agree 12 24
Neutral - -
Disagree 7 14
Strongly disagree 1 2
Total 50 100
Source: Research Survey 2025

From the table above, 30 Respondents representing 60% strongly agree that their

organization addresses employees concerns and feed bank in timely and effective manner, 12

Respondents representing 24% agree that their organization addresses employees concerns

and feed bank in timely and effective manner, none of the respondent neither agree nor

disagree that their organization addresses employees concerns and feed bank in timely and

effective manner, 7 Respondents representing 14% disagree that their organization do not

addresses employees concerns and feed bank in timely and effective manner, 1 Respondent

representing 2% strongly disagree that their organization do not addresses employees

concerns and feed bank in timely and effective manner.

Question 4: The management of your organization considers your welfare as

paramount

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 25 50
Agree 10 20
Neutral 5 10
Disagree 6 12
Strongly disagree 4 8
34
Total 50 100
Source: Research Survey 2025

From the table above, 25 Respondents representing 50% strongly agree that management of

the organization considers their welfare paramount, 10 Respondents representing 20% agree

that management of the organization considers their welfare paramount, 5 Respondents

representing 10% neither agree nor disagree that management of the organization considers

their welfare paramount, 6 Respondents representing 12% disagree that management of the

organization did not considers their welfare paramount, while 4 Respondents representing

8% strongly disagree that management of the organization did not considers their welfare

paramount.

This suggest that majority of the respondents believe that their welfare is considered

paramount by the management of their organization.

Question 5: The organization provides appropriate financial incentives and reward for

exceptional performance

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 35 70
Agree 8 16
Neutral - -
Disagree 6 12
Strongly disagree 1 2
Total 50 100
Source: Research Survey 2025

35
From the table above, 35 Respondents representing 70% strongly agree that their

organization provides appropriate financial incentives and rewards for exceptional

performance, 8 Respondents representing 16% agree that their organization provides

appropriate financial incentives and rewards for exceptional performance, none of the

respondent neither agree nor disagree their organization provides appropriate financial

incentives and rewards for exceptional performance, 6 Respondents representing 12%

disagree that their organization did not provides appropriate financial incentives and rewards

for exceptional performance, while 1 Respondent representing 2% strongly disagree that their

organization did not provides appropriate financial incentives and rewards for exceptional

performance.

This shows that majority of the employee believe that the organization provide appropriate

financial incentives and rewards for exceptional performance.

Question 6: The remuneration you receive from organization is fair and satisfactory

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 28 56
Agree 10 20
Neutral 1 2
Disagree 8 18
Strongly disagree 3 6
Total 50 100
Source: Research Survey 2025

From the table above, 28 Respondents representing 56% strongly agree that the remuneration

they receive from their organization is fair and satisfactory, 10 Respondents representing

36
20% agree that the remuneration they receive from their organization is fair and satisfactory,

1 Respondent representing 2% neither agree nor disagree that the remuneration they receive

from their organization is fair and satisfactory, 8 Respondents representing 16% disagree that

the remuneration they receive from their organization is not fair and satisfactory, while 3

Respondents representing 6% strongly disagree that the remuneration they receive from their

organization is not fair and satisfactory.

This result indicate that majority of respondents view their remuneration as fair and

satisfactory.

Question 7: Colleagues in your organization consistently demonstrate honesty, integrity,

and professionalism in their workplace

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 32 64
Agree 12 24
Neutral 1 2
Disagree 5 10
Strongly disagree - -
Total 50 100
Source: Research Survey 2025

From the table above, 32 Respondents representing 64% strongly agree that colleague in their

organization consistently demonstrate honesty, integrity, and professionalism in their

workplace, 12 Respondents representing 24% agree that colleague in their organization

consistently demonstrate honesty, integrity, and professionalism in their workplace, 1

Respondent representing 2% neither agree nor disagree that colleague in their organization

37
consistently demonstrate honesty, integrity, and professionalism in their workplace, 5

Respondents representing 10% disagree that colleague in their organization did not

consistently demonstrate honesty, integrity, and professionalism in their workplace, while

none of the Respondents strongly disagree that colleague in their organization did not

consistently demonstrate honesty, integrity, and professionalism in their workplace.

This result indicate that majority of respondents view their colleague in their organization

consistently demonstrate honesty, integrity, and professionalism in their workplace.

Question 8: Ethical consideration are taken into account when making business in your

organization

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 20 40
Agree 18 36
Neutral 5 10
Disagree 5 10
Strongly disagree 2 4
Total 50 100
Source: Research Survey 2025

From the table above, 20 Respondents representing 40% strongly agree that ethical

consideration are taken into account when making business decision in their organization, 18

Respondents representing 36% agree that ethical consideration are taken into account when

making business decision in their organization, 5 Respondents representing 10% neither

agree nor disagree that ethical consideration are taken into account when making business

38
decision in their organization, 5 Respondents representing 10% disagree that ethical

consideration are not taken into account when making business decision in their organization,

while 2 Respondents representing 4% strongly disagree that ethical consideration are not

taken into account when making business decision in their organization.

Question 9: The work ethics in your organization are strong and contribute to a positive

work culture

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 15 30
Agree 20 40
Neutral 5 10
Disagree 10 20
Strongly disagree - -
Total 50 100
Source: Research Survey 2025

From the table above, 15 Respondents represent 30% strongly agree that the work ethics in

their organization are strong and contributes to a positive work culture, 20 Respondents

represent 40% agree that the work ethics in their organization are strong and contributes to a

positive work culture, 5 Respondents represent 10% neither agree nor disagree that the work

ethics in their organization are strong and contributes to a positive work culture, 10

Respondents represent 20% disagree that the work ethics in their organization are not strong

and contributes to a positive work culture, none of the respondent strongly disagree that the

work ethics in their organization are not strong and contributes to a positive work culture.

39
Question 10: The organization foster a supportive and inclusive work environment

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 10 20
Agree 28 56
Neutral - -
Disagree 10 20
Strongly disagree 2 4
Total 50 100
Source: Research Survey 2025

From the table above, 10 Respondents representing 20% strongly agree that their

organization foster a supportive and inclusive work environment, 28 Respondents

representing 56% agree that their organization foster a supportive and inclusive work

environment, none of the respondent neither agree nor disagree that their organization foster

a supportive and inclusive work environment, 10 Respondents representing 20% disagree that

their organization did not foster a supportive and inclusive work environment, while 2

Respondents representing 4% strongly disagree that their organization did not foster a

supportive and inclusive work environment.

Question 11: Your organization values your contributions and recognizes your

achievement

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 15 30
Agree 25 50
Neutral - -

40
Disagree 10 20
Strongly disagree - -
Total 50 100
Source: Research Survey 2025

From the table above, 15 Respondents representing 30% strongly agree that their

organization values their contribution and recognize their achievement, 25 Respondents

representing 50% agree that their organization values their contribution and recognize their

achievement, None of the Respondent neither agree nor disagree that their organization

values their contribution and recognize their achievement, 10 Respondents representing 20%

disagree that their organization did not values their contribution and recognize their

achievement, while None of the Respondent strongly disagree that their organization did not

values their contribution and recognize their achievement.

Question 12: Organization has a positive impact on the development of community and

society as a whole

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 25 50
Agree 18 36
Neutral 2 4
Disagree 4 8
Strongly disagree 1 2
Total 50 100
Source: Research Survey 2025

From the table above, 25 Respondents represent 50% strongly agree that their organization

has a positive impact on the development of community and society as a whole, 18


41
Respondents represent 36% agree that their organization has a positive impact on the

development of community and society as a whole, 2 Respondents represent 4% neither agree

nor disagree that their organization has a positive impact on the development of community

and society as a whole, 4 Respondents represent 8% disagree that their organization has no

positive impact on the development of community and society as a whole, 1 Respondent

represent 2% strongly disagree that their organization has no positive impact on the

development of community and society as a whole.

Question 13: Do you comply that your organization has a positive reputation that would

make other associate with it.

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 10 20
Agree 15 30
Neutral 5 10
Disagree 8 16
Strongly disagree 2 4
Total 50 100
Source: Research Survey 2025

From the table above, 10 Respondents represent 20% strongly agree that their organization

has a positive reputation that would make others associate with them, 15 Respondents

represent 30% agree that their organization has a positive reputation that would make others

associate with them, 5 Respondents represent 10% neither agree nor disagree that their

organization has a positive reputation that would make others associate with them, 8

Respondents represent 16% disagree that their organization has no positive reputation that

42
would make others associate with them, 2 Respondents represent 4% strongly disagree that

their organization has no positive reputation that would make others associate with them.

Question 14: Your organization produce high-quality product/services to their customer

OPTION FREQUENCY PERCENTAGE %


Strongly Agree 25 50
Agree 13 26
Neutral 2 4
Disagree 5 10
Strongly disagree 5 10
Total 50 100
Source: Research Survey 2025

From the table above, 25 Respondents representing 50% strongly agree that their

organization produce high-quality product and services to their customer, 13 Respondents

representing 26% agree that their organization produce high-quality product and services to

their customer, 2 Respondents representing 4% neither agree nor disagree that their

organization produce high-quality product and services to their customer, 5 Respondent

representing 10% disagree that their organization did not produce high-quality product and

services to their customer, while 5 Respondent representing 10% strongly disagree that their

organization did not produce high-quality product and services to their customer.

Question 15: All the feedback about your organization reputation is negative
43
OPTION FREQUENCY PERCENTAGE %
Strongly Agree 5 10
Agree 5 10
Neutral 1 2
Disagree 35 70
Strongly disagree 4 8
Total 50 100
Source: Research Survey 2025

From the table above, 5 Respondents representing 10% strongly agree that all the feedback

about their organization reputation is negative, 5 Respondents representing 10% strongly

agree that all the feedback about their organization reputation is negative, 1 Respondent

representing 2% neither agree nor disagree that all the feedback about their organization

reputation is negative, 35 Respondents representing 70% disagree that all the feedback about

their organization reputation is not negative, while 4 Respondents representing 8% strongly

disagree that all the feedback about their organization reputation is not negative.

TES OF HYPOHESIS

Hypothesis is an unproved theory, preposition sent-forth and explanation of something often

as the basis for further investigation. Hypothesis is the guide for investigation in the entire

process of research endeavour and keeps the researcher on the main line of study on impact

of corporate governance on employee and organizational performance.

This section is considered with the testing of hypothesis, two alternative conclusions are

involved.

44
A. NULL HYPOTHESIS (H0): is a statement that assumes there is no significant

relationship or difference between two or more variables or group being studied. It is

represents the default position or a position of no effect.

B. ALTERNATIVE HYPOTHESIS (H1): is a statement that contradicts or opposes the

null hypothesis (H0). It represents the claim or hypothesis that a researcher is trying to

support or prove. It states that there is a significant relationship, effect, or difference

between the variable and groups under study.

The researcher adopted the use of chi-square method to test the hypothesis at 5% significance

level.

Ho: Effective Communication has no significant effect on employees’ satisfaction.

H1: Effective Communication has significant effect on employees’ commitment.

Table 1: computation of chi-square (X2) of response frequencies between


Effective Communication and Employees’ Satisfaction.
Response Observed Expected Fo-Fe (Fo-Fe)2
frequency frequency Fe
45
(Fo) (Fe)
Strongly Agree 28 10 18 32.4

Agree 17 10 7 4.9

Neutral 1 10 -9 8.1

Disagree 4 10 -6 3.6

Strongly Disagree - 10 -10 10.0

Total 50 50 59

Computed ∑x2 =59


Source: research Data, 2025
Also, to determine the decision rule, the degree of freedom is applied.
Df=(r-1) (c-1) where df= degree of freedom, r= number of rows, c= numbers of
columns
Degree of freedom= (r-1) (c-1) = (2-1) (5-1)= 1x 4
Df= 4
Significance level=5%
Critical value of x2 at df 4=9.49
Computed x2= 59
Decision rule:
Since the computed value x2= 59 is greater than the critical value of 9.49. The null

hypothesis (Ho) is rejected and the alternative accepted. Thus there is significance

relation between Effective Communication and Employee Satisfaction.

Hypothesis Two

46
Ho: Remuneration has no significant effect on Employees’ Commitment

H1: Remuneration has significant effect on Employees’ Commitment

Table 2: computation of chi-square (X2) of response frequencies Remuneration

and Employees’ Commitment.

Response Observed Expected Fo-Fe (Fo-Fe)2


frequency frequency Fe
(Fo) (Fe)
Strongly Agree 35 10 25 62.5

Agree 8 10 -2 0.4

Neutral - 10 -10 10.0

Disagree 6 10 -4 1.6

Strongly Disagree 1 10 -9 8.1

Total 50 50 82.6

Computed ∑x2 =82.6


Source: research Data, 2025
Also, to determine the decision rule, the degree of freedom is applied.
Df=(r-1) (c-1) where df= degree of freedom, r= number of rows, c= numbers of
columns
Degree of freedom= (r-1) (c-1) = 2 ((2-1) (5-1)= 1x 4
Df= 4
Significance level=5%
Critical value of x2 at df 4=9.49
Computed x2= 82.6
47
Decision rule:

Since the computed value x2= 82.6 is greater than the critical value of 9.49. The null

hypothesis (Ho) is rejected and the alternative accepted. Thus there is significance

relation between Remuneration and Employees’ Commitment.

Hypothesis Three

Ho: Work Ethics has no significant impact on Corporate Reputation

H1: Work Ethics has significant impact on Corporate Reputation

Table 3: computation of chi-square (X2) of response frequencies between Work

Ethics on Corporate.

Response Observed Expected Fo- (Fo-Fe)2


frequency frequency Fe Fe
(Fo) (Fe)
Strongly Agree 20 10 10 10.0

Agree 18 10 8 6.4
48
Neutral 5 10 -5 2.5

Disagree 5 10 -5 2.5

Strongly Disagree 2 10 -8 6.4

Total 50 50 27.8

Computed ∑x2 =27.8


Source: research Data, 2025
Also, to determine the decision rule, the degree of freedom is applied.
DF=(r-1) (c-1) where df= degree of freedom, r= number of rows, c= numbers of
columns
Degree of freedom= (r-1) (c-1) = 2 ((2-1) (5-1) = 1x 4
DF= 4
Significance level=5%
Critical value of x2 at df 4=9.49
Computed x2= 27.8

Decision rule:

Since the computed value x2= 27.8 is greater than the critical value of 9.49. The null

hypothesis (Ho) is rejected and the alternative accepted. Thus there is significance

relation between Work Ethics has significant impact on Corporate Reputation.

49
4.3. DISCUSSION OF FINDINGS

These findings highlight the importance of effective communication in fostering positive job

satisfaction among employees. When communication lines among various departments are

seen as effective, employees are more likely to feel confident and satisfied with their work

environment. Furthermore, organizations that value and promote effective communication,

address employee concerns in a timely manner, and provide appropriate incentives and

rewards for exceptional performances are likely to enhance job satisfaction among their

employees.

It is worth noting that while the regression analysis provides evidence of a relationship

between perception of organizational communication and job satisfaction, it does not

establish causality. Other factors not included in this analysis may also contribute to

employees' job satisfaction. Further research and analysis may be required to explore the

complex dynamics and underlying mechanisms between organizational communication and

job satisfaction.

Overall, these findings emphasize the significance of fostering effective communication

practices within organizations to enhance employees' job satisfaction, which can ultimately

contribute to improved performance and organizational success.

50
CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDINGS

The current investigation focus on the Impact of Corporate Governance on the Performance

of MTN Telecommunication Network in Nigeria. Three indicators of corporate governance

mechanism (Effective Communication, Remuneration and Work Ethics) were incorporated in

the study. Data were obtained from audited annual report of MTN NG.

The result of the literature review and data analysis revealed that existence of a positive but

non-significant relationship between effective communication and employees’ satisfaction,

on one other, and between remuneration and employees’ commitment on the other hand.

However, negative but non-significant relationships exist between work ethics and corporate

reputation. Base on the findings of the current study, the following recommendation has been

put forward. In order to prevent distress in the Telecommunication sector, there should be a

regular review of the corporate governance codes, so as to reflect current social,

environmental, technological and economic situation.

5.2. CONCLUSION

Based on the findings of this research work, the conclusion deduced from the finding of this

significant impact on organizational performance. This means that an effective corporate

governance framework can lead to better performance outcome for the organization. It is

important for organization to ensure that they have sound corporate governance practices in

place in order to improve their performance and enhance their competitiveness in the market.

51
Effective communications among their employees are likely to have higher level of

employees’ satisfaction and performance. The finding highlights the importance of effective

communication in the workplace and its impact on employees’ satisfaction.

It can be concluded that corporate governance plays an important role in ensuring good

business behavior. This finding implies that organizations with strong corporate governance

structure are more likely to comply with ethical standards, have better accountability and

transparency and make decision that benefit all employees.

5.3 RECOMMENDATIONS

The researcher recommends the following based on the findings of this study:

1. The management of MTN NG, Ilorin, should look deep into their corporate

governance practices and restructure how to implement it in other for it to improve

organizational performance.

2. MTN NG should ensure ethical and professional standards in their pursuit of

professional objections, employees’ satisfaction, high employee morale and

maintenance of market discipline.

3. MTN NG, Ilorin should increase the level communication between top management

and subordinates as it helps to improve organizational performance.

4. MTN NG should ensure that the concept of their corporate governance process is

underpinned by the principle of openness, integrity and accountability.

5. It is recommended for the organization to prioritize corporate governance practice in

order to improve their overall performance and reputation.

52
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54
APPENDIX

Dear Sir/Ma,

I am an undergraduate student of the Department of Business Administration and


Management, Kwara State Polytechnic, carrying out my final year study on the topic
“IMPACT OF CORPORATE GOVERNANCE ON ORGANIZATIONAL
PERFORMANCE (A CASE OF MTN NIGERIA, ILORIN)

This questionnaire as part of my final year undergraduate study work, is designed to collect
data on the above topic in order to examine how Corporate Governance has impact on
organizational performance in the workplace and how that relates to the increase or decrease
in employee’s performance in MTN Nigeria Company. However, you can be rest assured that
every information supplied will be treated with utmost confidentiality and used purely for
academic purpose alone.

Thanks for your time

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SECTION A
Personal Information of The Respondents
1. Gender: (i) Male ( ) (ii) Female ( )
2. Age in years: (i) 18-20 years ( ) (ii) 21-30 years ( ) (iii) 31-40 years ( ) (iv) 41 years
and above ( )
3. Marital Status: (i) Single ( ) (ii)Married ( ) (iii) Divorced ( ) (iv) Widow/Widowers ( )
4. Educational Qualification: (i) First School Leaving Certificate ( ) (ii) O’Level ( ) (iii)
N.C.E/O.N.D ( ) (iv) H.N.D/Bachelor’s degree ( ) (v) Master‘s degree ( ) (vi) Ph.D ( )
5. Department: (i) Operation & Maintenance ( ) (ii) Accounting & Finance ( ) (iii)
Engineering ( ) (iv) Engineering ( ) (v) Commercial ( ) Information ( )
6. Length of services: 1-5 ( ) 6-10 ( ) 11-15 ( ) 16&above ( )
SECTION B

Please choose the option that best expresses your view on the relationship between

organizational politics and your performance at your workplace. Please tick (√) as follows.

Strongly Agree (SA), Agree (A), Undecided (U), Disagree (D), Strongly Disagree (SD)

S/ STATEMENTS SA A U D SD
N
1. Communication lines among various departments are seen as
effective
1. Your Organization values and promotes effective
communication among employees
1. Your organization addresses employee’s concerns and feedback
in a timely and effective manner
2. The management of your organization considers your welfare as
paramount
3. The organization provides appropriate financial incentives and
reward for exceptional performance
4. Colleagues in your organization consistently demonstrate
honesty, integrity, and professionalism in their workplace
5. Colleagues in your organization consistently demonstrate
honesty, integrity, and professionalism in their workplace
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6. Ethical consideration are taken into account when making
business in your organization

7. The work ethics in your organization are strong and contribute


to a positive work culture

8. The organization foster a supportive and inclusive work


environment

9. Your organization values your contributions and recognizes


your achievement

10.Organization has a positive impact on the development of


community and society as a whole
11.Do you comply that your organization has a positive reputation
that would make other associate with it.
12.Your organization produce high-quality product/services to their
customer
13.All the feedback about your organization reputation is negative

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