Assessment of Corporate Governance in Dangote and Bua Cement Companies

B. Muhammad¹ , A.M. Yamma² , M.B. Babanumma³

Section:Research Paper, Product Type: Journal-Paper
Vol.11 , Issue.3 , pp.17-23, Sep-2023

Online published on Sep 30, 2023

Copyright © B. Muhammad, A.M. Yamma, M.B. Babanumma . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This study assessed the effects of corporate governance on the Bua and Dongote cement industries. The respondents were chosen based on their knowledge and experience in the cement sector. A stratified sampling approach was followed by simple random sampling in this investigation. In this study, all of the elements in a given stratum are identical in terms of the relevant parameter. The questionnaire consisted of nine questions, including socio-demographic ones. The responses were graded on a five-point Likert scale ranging from strongly agreeing to strongly disagreeing. The study used descriptive statistics (frequency and percentage) as tools for data analysis. Three hundred and eighty-nine people responded, resulting in a response rate of 97%. The results show that 137 (35.2%), 135 (34.7%), 77 (19.8%), and 40 (10.3%) of the respondents were between the ages of 41–50, 26–40, above 50, and 18–25 years, respectively. From the findings, it is clear that 266 (63.4%) of respondents were male, while 123 (31.6%) of the total respondents were female. The results obtained revealed that 78 (20.1%) of the respondents attained informal education, 78 (20.1%) of the respondents attained primary school, 116 (29.8%) of the respondents attained secondary school, and 117 (30.1%) of the respondents attained tertiary education. Based on the respondents professions, 58 (14.9%), 78 (20.1%), 97 (24.9%), and 97 (24.9%) of the respondents were facilities maintenance, ready mix batch, yard workers, and production team, respectively, while 39 (10%) and 20 (5.1%) of the respondents were both plant welders and plant supervisors, respectively. The finding revealed that 196 (50.4%) of the respondents unanimously agreed that procedures and structures were put in place appropriately to minimize conflicts of interest in both cement companies. The result shows that 252 (64.8%) of the respondents strongly agree that poor or inadequate application of corporate governance leads to poor financial performance in the cement industry. The responses of the respondents revealed that both companies Based on the findings, almost all of the 330 respondents (84.8%) agree that directors and advisers are free from the influence of others. Most of these respondents were yard workers, ready-mix Batch workers, and Plant welders from both companies. From the results obtained, two hundred and fifteen (55.3%) of the respondents strongly agreed that there was relevance to corporate governance in achieving better financial performance in cement production companies.

Key-Words / Index Term :
Corporate, governance, performance, Bua, Dangote

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