ABSRACT
The study sought to identify the benefits derived from corporate governance practice, assess the
challenges encountered in corporate governance practice, and determine the nature of the
relationship between corporate governance and organizational effectiveness. The study has a
population size of 613, out of which a sample size of 242 was realized using Taro Yamane’s
Formula at 5% error tolerance and 95% level of confidence. The Instruments used for data
collection were questionnaire and interview. A total of 242 copies of the questionnaire were
distributed while 191(79%) copies were returned and 51(21%) were not returned. The Survey
research design was adopted for the study.
Three hypotheses were tested using Pearson product
moment correlation coefficient and chi- square statistical tools. The findings indicated that
good corporate governance practice improves corporate performance, improves access to
international capital markets and attracts quality foreign investments. Supply of accounting
information, demand for information and monitoring cost are challenges encountered in
corporate governance practice. There is a positive relationship between corporate governance
practice and organizational effectiveness. The study recommended that organisations should be
providing shareholders with periodic reports on changes affecting the shareholders in the
company, and should hold regular meetings with members of the Board of Directors to ensure
that their roles should be done.
