Corporate Governance Practices of Contributory Pension Scheme Operators in Nigeria
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Date
2019-06-29
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Putra Malaysia
Abstract
Unlike the previous defined benefit pension scheme in Nigeria, the current contributory
pension scheme (CPS) is characterised by separation of ownership and management
of pension fund. In view of agency problem this portends, the need to empirically
examine corporate governance (CG) practices of operators is of importance for CPS
survival. Thus, this study examines corporate governance practices of operators of
CPS in management and custody of the CPS fund. Survey data from 212 managers and
assistant managers of CPS operators were analysed using one-sample t-test and mixed
ANOVA. The results showed significant practices of CG mechanisms in the form of board
independence, director independence, board disclosure and audit committee effectiveness.
Significant difference was found in practice of above CG mechanisms.
However, there was no significant difference in GC practices among various types of
CPS operators. Similarly, the interaction of CG mechanisms with CPS operator type was
also found to be insignificant. Based on the results, good corporate governance practices
in the management of CPS fund is evident.Unlike the previous defined benefit pension scheme in Nigeria, the current contributory
pension scheme (CPS) is characterised by separation of ownership and management
of pension fund. In view of agency problem this portends, the need to empirically
examine corporate governance (CG) practices of operators is of importance for CPS
survival. Thus, this study examines corporate governance practices of operators of
CPS in management and custody of the CPS fund. Survey data from 212 managers and
assistant managers of CPS operators were analysed using one-sample t-test and mixed
ANOVA. The results showed significant practices of CG mechanisms in the form of board
independence, director independence, board disclosure and audit committee effectiveness.
Significant difference was found in practice of above CG mechanisms.
However, there was no significant difference in GC practices among various types of
CPS operators. Similarly, the interaction of CG mechanisms with CPS operator type was
also found to be insignificant. Based on the results, good corporate governance practices
in the management of CPS fund is evident. However, it is recommended that there is an urgent need to intensify regulatory role of
the part of CPS regulator- National Pension
Commission to ensure that operators are
not lacking behind in practices of various
mechanisms of CG.
Description
Keywords
Corporate governance, board independence, board disclosure, audit committee, director independence, ownership