Corporate Governance and Organisational Performance of LAPO Micro-Finance Bank in Nigeria

Abstract

The research looked at the link between corporate governance and the performance of the LAPO microfinance bank in Nigeria. This study adopted a survey research method to give questions to 144 LAPO microfinance bank employees in Edo State's Oredo and Egor Local Government Areas. The study's results were evaluated using the Cronbach Alpha test, which is an ordinary least square regression approach. The empirical results indicated that credit risk assessment has a negative and insignificant relationship with LAPO microfinance bank performance at a 5% level of significance, but capital sufficiency has a positive and significant relationship with LAPO microfinance bank performance. In order to preserve the organization's success, investors and shareholders need ensure that management maintains the capital adequacy ratio, according to the research. The capital adequacy ratio should be maintained by top-level management, investors, and shareholders, according to the study, in order for the company to continue to operate well. According to the study, other corporate governance variables (board expertise, audit committee diligence, board structure) that may contribute to microfinance institution success should be captured in future empirical work on corporate governance and organisational performance.