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Corporate governance practices of contributory pension scheme operators in Nigeria


Aliu, Olanrewaju Atanda and Alaudin, Ahmadasri and Abdul Hamid, Mohamad Ali (2019) Corporate governance practices of contributory pension scheme operators in Nigeria. Pertanika Journal of Social Sciences & Humanities, 27 (2). pp. 1091-1109. ISSN 0128-7702; ESSN: 2231-8534


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.

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Additional Metadata

Item Type: Article
Divisions: Putra Business School
Publisher: Universiti Putra Malaysia Press
Keywords: Corporate governance; Board independence; Board disclosure; Audit committee; Director independence; Ownership
Depositing User: Nabilah Mustapa
Date Deposited: 08 Jul 2019 07:37
Last Modified: 08 Jul 2019 07:37
URI: http://psasir.upm.edu.my/id/eprint/69963
Statistic Details: View Download Statistic

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