ABSTRACT

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Effective supervision of financial institutions is premised on existence of sound corporate governance. Corporate governance refers to the extent to which companies are run in an open and honest manner. Despite the relative stability experienced by financial institutions post-consolidated era, the health of financial institutions in Nigeria today appears to have worsen due to the weak corporate governance. It is as a result of this, the study examine the effect of corporate governance on financial performance of deposit money banks in Nigeria. This study obtained secondary data from the annual report of deposit money banks quoted on the Nigeria Stock Exchange (NSE) spanning from 2011 to 2018 with the use of purposive sampling technique. Panel regression technique was adopted to analyse data collected. The result showed that corporate governance has significant effects on financial performance of deposit money banks in Nigeria as indicated by the p-value of Wald x2 of (0.0000) with coefficient (10.92) at 5% significance level. When individual element of corporate governance is considered, CEO duality has no significance effect on ROA with coefficient 2.1903 and p-value 0.943 while management equity holding has significant effect on ROA as indicated by p-value of 0.0000 and coefficient 10.958 at 5% significant level. The study then concluded that corporate governance has significant effect on financial performance of selected banks in Nigeria. Therefore the study recommends that CEO duality should be discourage in the deposit money banks in Nigeria and mandates a three years cooling off period where this is the case. This will assist to minimize potential conflicts of interests.

This paper examined the mediating role of trust in government on the influence of public governance quality indicators (accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption) on tax compliance in Africa. Cross-country data obtained from 38 African countries for 2015 was used and analyzed using Ordinary Least Squares (OLS) regression analysis. The study found that accountability, political stability, control of corruption, and trust have a significant influence on tax compliance among the sampled African countries, but government effectiveness, regulatory quality, and the rule of law and have insignificant influence on tax compliance. The result of the mediating effects revealed that trust mediates the influence of accountability and political stability on tax compliance in Africa. However, it failed to mediate the influence of government effectiveness, regulatory quality, rule of law, and control of corruption on tax compliance among sample African countries. The study offers theoretical insights on the role of trust as a mediator on social exchange relationships from the context of public governance quality on tax compliance. It also implies to the policymakers that building trust is an important mechanism through which the impact of public governance on tax compliance would be more pronounced. The study further calls for replication of its findings in other continents such as the Americas, Asia, and Europe.