EMPIRICAL ANALYSIS OF THE IMPACT OF CORPORATE GOVERNANCE MECHANISMS ON THE MARKETING SYSTEM OF NIGERIAN BANKING SECTOR

ALO EBENEZER ADEBISI & OLUWASANMI, OLUWASEUN O.

Department of Business Administration,

College of Management Sciences,

Joseph Ayo Babalola University, Ikeji Arakeji, Osun State, Nigeria.

E-mail: ebenezer_alo@yahoo.com

ABSTRACT

Inadequate corporate governance practices are a major challenge facing the Nigerian banking industry. Corporate governance involves a system by which governing institutions and all other organizations relate to their communities and stakeholders to improve their quality of life. However, the impact of corporate governance on marketing system of Nigerian banking industry has not been given adequate attention in literature. This study therefore examined empirically, the impact of corporate governance mechanisms on the marketing system of Nigerian banking sector. The study population consisted of all staff of United Bank for Africa Plc (UBA) in Ilorin metropolis. The simple random sampling method was employed to select five branches of UBA Plc in Ilorin, Kwara State. A total of one hundred and fifty copies of questionnaire were designed and administered on the staff of the selected branches of UBA Ilorin. The statistical tools employed in the study are frequency distribution, mean, standard deviation and Pearson correlation coefficient. An analysis of the data revealed that there was a negative significant correlation between corporate governance practices in Nigerian banking sector and marketing system (r = -0.078; N=150; p (0.010) < 0.05). The study concluded that corporate governance had a negative significant impact on marketing system of Nigerian banking sector (Cal.X2=38.650>Crit.X2=9.49; df=1, p (.000) <.01). The study recommended that modern marketing system should be properly adopted to meet the need of Nigerian  

Governance environment and that Nigerian banking sector should incorporate accountability and transparency in their schemes.

Keywords: Governance, Corporate Governance, Corporate Governance Mechanisms, Marketing           Mix Elements