Corporate Governance And The Financial Performance Of Pension Fund Administrators In Nigeria

Corporate Governance And The Financial Performance Of Pension Fund Administrators In Nigeria

Abstract

This study was designed to empirically probe the effect of commercial governance on the fiscal performance of pension fund directors in Nigeria within the period of 2004 – 2014. The study employed the use of secondary data sourced from the websites and audited fiscal statements of pension fund directors in Nigeria. For the purpose of the study, board size and board composition were used as the deputy for commercial governance and return on asset was used a deputy for the fiscal performance of pension fund directors. These variables were also subordinated to a multiple retrogression analysis using the Ordinary Least Places( OLS) estimator at 5 position of significance with the return on asset as the dependent variable. From the study, it was set up that board size has a positive and statistically insignificant relationship with the return on asset of pension fund directors. On the other hand, board composition measured by rate of board members with fiscal moxie( experience in banking/ investment, insurance and/ or pension), to total number of the board members was set up out to have a negative but no statistically significant relationship with the return on asset of pension fund directors. This could be as a result of involving further board members who aren’t fiscal moxie in the board of pension fund directors and as similar, their opinions and their inexperience of fiscal matters tends to be mischievous to the performance of the pension fund directors in Nigeria. The study thus recommended that, in board composition, there should be a reduction in the number of board members who don’t have fiscal moxie especially in the area of banking/ investment, insurance and/ or pension as this professional moxie is vital for high profitability of pension fund directors in Nigeria.

TABLE OF CONTENTS

Title runner i

protestation ii

instrument iii

fidelity iv

Acknowledgment v

Abstract vi

Table of Contents vii

CHAPTER ONE

preface

Background to the Study 1

Statement of Problem 4

ideal of the Study 5

exploration Question 5

Statement of Hypothesis 6

Significance of the Study 6

compass of the Study 7

Limitation of the Study 8

description of Terms 8

Organization of the Study 10

Reference 11

CHAPTER TWO

REVIEW OF RELATED LITERATURE

Theoretical Framework 12

propositions of Commercial Governance 12

propositions of Pension Fund 18

Discussion of the Theoretical Framework 20

Abstract Framework 21

An overview of Commercial Governance and pension finances 21

Overview of the Pension Reform Act 23

Pension Administration in Nigeria 25

Reasons for the creation of commercial governance in Nigeria 26

Commercial Governance and the Pension Reform Act 2004 27

Factors challenging the Commercial Governance

practices in Nigeria 34

Relationship between commercial governance and

the fiscal performance of pension fund

directors in Nigeria 35

Empirical Review 36

Gap in Literature 43

References 45

CHAPTER THREE

exploration METHODOLOGY

preface 50

Research Design 50

Population of the Study 50

Sample Size and slice ways 50

Data Collection ways 51

functional Measure of Variables 51

Model Specification 51

system of Data Analysis 53

References 54

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

Data donation 55

Data Analysis 56

Discussion of Findings 57

thesis Testing 58

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

Summary of Findings 60

Conclusion 61

Recommendations 61

Bibliography 63

supplements 64