Enhancing public confidence in financial reporting, the role of corporate governance

Project Abstract

<p> This study examined the role of corporate governance in organizations, and how the public confidence can be restored in organization through financial reporting. The study aimed at ascertaining the extent to which financial helps organizations in achieving their corporate objective. In the course of achieving these objectives, certain research questions were raised, which led to the adoption of three research hypotheses. The study particularly looked at the corporate governance in Consolidated Breweries Nigeria Plc in Edo State. A total of 100 sample was randomly selected from the organization and were administered questionnaire. Based on the descriptive statistics &nbsp; that was carried out. The chi square test showed that audit report significantly improved the process of corporate governance in Nigeria. It was also confirmed that effectiveness of financial reporting significantly improves corporate objectives. Lastly, the result showed that corporate governance help enhance public confidence of financial reports. In the light of these findings, conclusions were drawn and recommendations given. The study strongly recommend that the auditor being able to detect malicious act and scandals in organizations finance, is equally able to give recommendations for board of the directors, the neglect of this responsibility is a matter that needed to be reversed in order to effect the firmness of corporate governance in organizations. <br></p>

Project Overview

<p> <b></b></p><p><b><b>INTRODUCTION</b></b></p><p><b><b></b></b></p><b><b><p><b>1.1 BACKGROUND OF THE STUDY</b></p><p><b></b></p><b><p>Treasury<br>function emerged as a result of the sophistication of banks. After the recapitalization<br>of banks capital to N25 billion in 31 December, 2005 due to increasing<br>competition, Banks have initiated lots of product to enhance their treasury<br>function, knowing that treasury product which is an important aspect of banking<br>activities especially as Banks operate at the short end of the financial market<br>known as money market. Indeed treasury function is a critical tool for<br>controlling liquidity. Interest rate and off balance-sheet risks, loans<br>deposits, borrowed fund pricing and the execution of assets and liability<br>management policies.</p><p>Management<br>of bank treasury comprises fund acquisition, investment in marketable<br>securities, hedging and the management of the bank’s reserve account at the<br>central bank. for a bank to be remain profitable and also be able to manage<br>their liquidity position, such bank should develop treasury management<br>strategies needed to compete with other banks in the industries, they should also<br>develop and market new treasury product which will enhance their liquidity and<br>profitability position.</p><p>Banks<br>when trying to manage its treasure products faced many challenges which may<br>come from customer when deciding on going to the other bank that they can<br>understand their treasury product or collect prime interest rate. Other<br>challenges may be from the regulatory authorities (CBN) by trying to regulate<br>the liquidity position of commercial bank initial new policy guidelines which<br>all banks must comply with.</p><p><b>1.2 STATEMENT OF PROBLEMS</b></p><p><b></b></p><b><p>The<br>treasury management and inadequate liquidity has recorded some initial failure<br>on Banks.</p><p>The<br>evolution of Union Bank Plc to make phenomenal profit, by making them to be<br>careless or resources utilization and particularly their treasure management.</p><p>The<br>inadequacy for the management strategies holding by banks.</p><p>The<br>inability of the Union Bank Plc and UBA Bank Plc to fulfil both its short and<br>long term obligation, it is based on the management of liquidity.</p><p><b>1.3 OBJECTIVES &nbsp; OF THE STUDY</b></p><p><b></b></p><b><p>The<br>under-listed point generally make up the objectives of the study, they are as<br>follows:</p><p>1. To<br>investigate the various techniques to treasury management in UBA Plc and Union<br>Bank Plc and also identify peculiar problems in the management of treasury<br>products.</p><p>2. To<br>find out, it the banks have initiated new strategies in marketing and<br>management of their treasury products.</p><p>3. To<br>find out the challenges encountered by banks in managing their treasury.</p><p>4. To<br>find out how the banks are monitored and supervised on CBN general policy<br>guidelines.</p><p><b>1.4 RESEARCH QUESTIONS</b></p><p><b></b></p><b><p>The<br>research question for this work is stated below:</p><p>1. Can<br>management of bank treasury be a critical tool for controlling it’s liquidity?</p><p>2. Does<br>management of the bank’s reserve account at CBN means managing the bank’s<br>balances in required reserve account?</p><p>3. Can<br>marketing of bank treasury product be an important aspect of banking<br>activities?</p><p>4. Is<br>new products developments the basic funding strategies in banking?</p><p>5. Can<br>management of bank treasury help in economic development?</p><p><b>1.5 STATEMENT OF HYPOTHESIS</b></p><p><b></b></p><b><p>HYPOTHESIS<br>I</p><p>Ho: There<br>is no relationship between the commercial bank total assist and her level of<br>profitability.</p><p>HA: &nbsp;There<br>is relationship between the commercial bank total asset and her level of<br>profitability.</p><p>&nbsp;HYPOTHESIS<br>II</p><p>Ho: There<br>is no significant relationship between a treasury management and bank<br>investment.</p><p>HA: &nbsp;There<br>is significant relationship between a treasury management and bank investment.</p><p><b>1.6 SIGNIFICANCE OF THE STUDY</b></p><p><b></b></p><b><p>Treasury<br>function which is the critical tools used by Banks to manage their liquidity<br>position, will help the banks to be able to know the new strategies used by<br>their competitors to manage their treasure products.</p><p>It<br>will also help the regulatory authority (CBN) to regulate the monetary policy<br>thereby enhancing economic development.</p><p>Academically,<br>it will be one of the sources through which student and or researcher would<br>understand the difference forms of treasury, products, the strategies used by<br>banks to manage their treasury effectively and efficiently, and also help them<br>to do more research work on management of bank treasury.</p><p><b>1.7 SCOPE OF THE STUDY</b></p><p><b></b></p><b><p>The<br>researcher intends to know how the banking industry management their treasury<br>function because treasury management which is known as the critical tool used<br>by banks to management their liquidity position. By knowing when to invest<br>short, medium or long – term and also the amount of cash to reserve in their<br>vault.</p><p>In<br>carrying out this research work, the researcher will specialize in two Banks<br>i.e. Union Plc and UBA Plc as areas covered in this research work, which the<br>finding, conclusion and recommendation will cover the entire system.</p><p><b>1.8 LIMITATION OF STUDY</b></p><p><b></b></p><b><p>One<br>of the major limitation is time constraint since the project is expected to be<br>completed within a short period of month.</p><p>Another<br>limitation is lack of statistical data and literature to review for the project<br>work financially constraints is also one of the limitations.</p><p>Furthermore,<br>because of oath of secrecy sworn by the bank officials and fear of divulging<br>vital information to their competitors, some staff members of Union bank and<br>UBA Plc found it difficult to release necessary information for this work. This<br>did not , in any way affect the validity and reliability of this project<br>because the researcher painstakingly ensure that all relevant fact on ground<br>were investigated.</p><p><b>1.9 DEFINITION OF TERMS</b></p><p><b></b></p><b><p>Analysis: To<br>study in detail by breaking it down into various parts, to submit s to certain<br>test order to identify its constituents to break up into its simplest element.</p><p>Bank: This<br>is a financial institutions that provides banking service.</p><p>Control: A<br>credit policy package should have in build monitoring device for comparing the<br>actual result with the policy guidelines. This can be achieved by specifying a<br>number of commercial returns to be rendered periodically.</p><p>Comparative: Having<br>to do with comparison or comparing what is similar and different in two or more<br>branches of knowledge measured or judged by company.</p><p>Hypothesis: This<br>is an assumption, which the person carrying out an investigation on a<br>particular to made ahead of time, before embarking on the investigation. The<br>hypothesis could be negative or alternative (positive) hypothesis.</p><p>Management: This<br>simply means getting things done through other people.</p><p>Policy<br>Guideline: This is the totality of the rules, procedures and processes,<br>which the management and bank adopts to guide them in their duties.</p><p>Target<br>Market: This refers to care customers of the bank.</p><p>9. &nbsp; &nbsp;Loan: A<br>loan is a credit facility extended by one party (Lender) to another party<br>(borrower), subjected to specific terms and condition agreed to both partie</p></b></b></b></b></b></b></b></b></b></b></b> <br><p></p>