The Effect of Corporate Governance Practices on Internal Control Efficiency: Study of Selected Firms

Abstract

This study is an attempt to examine the effect of corporate governance practices on internal control elements of risk assessment and monitoring activities. The study also seeks to determine the extent to which the act of good corporate governance affect the internal control measures in selected firms in Lagos Nigeria.

In order to achieve the objectives of this study, a questionnaire was developed and distributed to a sample of top executives like directors, senior managers and accountants of the 226 selected firms. The total number of 226 questionnaires were returned out of which 210 were usable were returned and were valid for analysis this gives a response rate of 92%.

Based on the results of the statistical analysis, the study indicated that corporate governance practices do contribute immensely to effective risk assessment and monitoring act to a high degree. The study also revealed that the commitment to risk assessment and monitoring activities strengthens the pillars of corporate governance at a high degree. These results show that the practices of corporate governance in firms have a significant effect in enhancing risk assessment and monitoring activities