Nigerian Banking Governance, Leadership Style, and Performance During the 2008-2009 Financial Crisis

Nigerian Banking Governance, Leadership Style, and Performance During the 2008-2009 Financial Crisis by Adeola Agbato MBA, University of Wales, 1998 BS, University of Lagos, 1993 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University November 2016 Abstract The 2008–2009 global financial crisis of financial systems negatively affected about 30% of Nigerian banks, leading to profitability issues. The profitability issues led to operational challenges, downsizing, and liquidation of some banks. The purpose of this correlational study was to examine the relationship between corporate governance structure, perception of leadership style, and bank performance. This study was groundedThe 2008–2009 global financial crisis of financial systems negatively affected about 30% of Nigerian banks, leading to profitability issues. The profitability issues led to operational challenges, downsizing, and liquidation of some banks. The purpose of this correlational study was to examine the relationship between corporate governance structure, perception of leadership style, and bank performance. This study was grounded in agency theory and used survey and archival data. Survey data were collected from 11 participants employed by commercial banks located in Nigeria, using the Multifaceted Leadership Questionnaire. Corporate governance and bank performance data were collected from annual bank reports. The model as a whole was not able to significantly predict bank performance, F(2,11,) = . 361, p = . 708, R = . 083. There was no relationship between corporate governance structure, employees’ perception of leadership style of bank leaders, and performance of banks. When corporate governance is practiced in organizations, it strengthens the structure of the banks. Implementation of corporate governance mechanisms serves as an internal control mechanism and reduces agency conflicts by aligning the interests of management with the interests of owners.The results of this study could be of interest to bank leaders who need to understand the relationship between corporate governance structure, employees’ perception of leadership styles, and bank performance. In some previous studies, corporate governance structure and perception of leadership style were found to impact positively on bank performance. A qualitative study to ascertain why the relationship studied is not significant in correlation could be most useful as a benefit to stakeholder’s understanding. Nigerian Banking Governance, Leadership Style, and Performance During the 2008-2009 Financial Crisis by Adeola Agbato MBA, University of Wales, 1998 BS, University of Lagos, 1993 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University November 2016 Dedication I dedicate this doctoral study to the glory of the Almighty God. I received the inspiration for this program while I was completing my first degree. Alhough I started this program 20 years after ending my first degree, completing this program despite very personal challenges, is a testimony to the faithfulness of the Almighty God. Acknowledgments I wish to acknowledge the support of my family, my colleagues at FITC, my course mates, and the entire faculty at Walden University for making this dream a reality. God bless you all. I would like to gratefully acknowledge my parents, Enoch and Florence Ogunfiade, for sowing the seeds of lifelong learning in my early childhood and nurturing this seed until my adulthood. They inspired me to pursue learning and sharing what I have learnt with others. I would also like to acknowledge my husband, Gbenga, for his unflinching support. My children, Olaoluwa and Ayooluwa, encouraged me by always asking this question “So, Mummy, when are you going to America for your graduation? ”, wanting to accompany me for the ceremony). I certainly could not abandon the program half way, due to this reason, despite the numerous challenges. My appreciation also goes to my colleagues at FITC, my cohorts in the 9000 classes, and entire faculty. In particular, Dr. Alice Grabielle shared her personal story in Residency 1, which I will never forget; that story kept me moving during the program. Dr. Freda Turner also provided a shoulder to lean on during critical moments in the journey. Last but definitely not the least, my appreciation goes to my chair, Dr. Kevin Davies. Dr. d. (as he prefers to be called in class) provided an atmosphere of learning during the doctoral study. He always motivated the 9000 cohorts with the words “keep pressing” and certainly we did press on. I could not have gotten a better chair than Dr. d.