THE ASSESSMENT OF CORPORATE GOVERNANCE SYSTEM OF FINANCIAL INSTITUTION IN NIGERIA

THE ASSESSMENT OF CORPORATE GOVERNANCE SYSTEM OF FINANCIAL INSTITUTION IN NIGERIA: Corporate governance is fundamental to the financial sector of various economies. It has thus received increasing emphasis in practice and academic research. This emphasis in practices and academic research. this is due to the experience in Europe, America, and Nigeria such as the one that happen in Eron and Cadbury’s misleading financial reporting (Cohen J, 2004 Krihnalmoorthy, 2004; Mark, 1996; mikhaiy. 2006). Corporate government in banking sector is to protect of disposition, shareholders and public at large the presence of effectives governance enhance market and public confidence while weak corporate governance translates to poor financial reporting which makes market and public confidence vary uninterested (Solude, 2004) this lead to the need for embarking on sound corporate governance principles in the banking industry in order to retain investors and other stakeholders confidence on the financial reports.The banking industry in Nigeria has undergone serious reform over the past years. The Central Bank of Nigeria (CBN) retirements for bank to increase their shareholding find to a minimum of twenty five (25) Billion Naira. These requirements led to merger and acquisition which reduced the number of banks operating in Nigeria to Twenty five (25) bank from 89 as at the beginning of 2006. The Central Bank of Nigeria (CBN) action was designed to make Nigeria banks more competitive to play in the global market. Successful l operation in the banking industries in Nigeria and elsewhere requires accountability transparency and respect for laws (Ogbechie, 2006). Therrfore this study focuses on the effect of corporate government on financial reporting system.