The concept of corporate governance has captured the attention of many bodies over the years because of its promising importance to the economic health of business organizations and society at large. This was confirmed by Claesense and Van (2002), which expressed the view that corporate governance has received considerable attention over the years. Many empirical studies have demonstrated the relationship between corporate governance and strong performance. Bebchuk, Cohen and Ferrell (2004) said that “companies that are effectively managed and controlled have a higher business performance.”
In his study, Gumpers, Ishi and Mitrick (2003) demonstrated that firms with lower levels of corporate governance led to higher risks and lower profits Of those that have more high quality management.
Corporate scandals from the early 2000s, including Enron, Worldcom, Tyco, USA, Southeast Asia, Europe and others, are directly related to corporate management failures (Hussein and Othman 2012, Abdelkader and Kwambo, 2012).
Nigeria is not excluded from these events, because a similar scandal in finance and accounting is hidden, some will affect the banking sector, lead to the liquidation of 26 banks in 1997 and rigging the financial position of a company in Cadbury Nigeria Plc. In 2006, the recent events in 2009, after the banking crisis after unification, ten banks have declared bankrupt and eight (8) bank managers were removed from the Central Bank of Nigeria (CBN 2010).