The Role of a Corporate Governance Mechanism in Mitigating Fraud: A Case Study of the Nigerian Banking Industry

Egejuru, Kenneth

Abstract

This study examines the role of CG mechanism in mitigating fraud in the Nigerian banking industry. Its dual objectives focus on examining the effectiveness of the board of directors and audit committees in mitigating fraud in Nigerian banks. Agency theory, famous for outlining the conflict of interests between the principal and the agent in firms, serves as the conceptual framework due to its influence in the discussion of the CG framework. The study employed semi-structured interviews to collect data and adopted thematic analysis using NVivo software to identify the themes and sub-themes. The empirical findings showed that the boards and audit committees mitigate fraud in the banks by promoting good governance through oversight, accountability, transparency, and whistleblowing. On the audit committees’ role in mitigating fraud, this study found that the committee uses its monitoring roles to enhance the quality of financial reports. It also ensures a robust process in the employment of external auditors, and strengthens internal safeguards such as internal controls, internal audits and risk management.. This study deepens the literature on CG by examining the board of directors and the audit committee's effectiveness using robust qualitative evidence. It also provides further recommendations on how to ensure the effectiveness of the CG mechanism in the Nigerian banking industry.

Citation

Egejuru, K. (2024). The Role of a Corporate Governance Mechanism in Mitigating Fraud: A Case Study of the Nigerian Banking Industry. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: Apr 22, 2024
• Publicly Available Date: May 26, 2024
• Award Date: Apr 25, 2024