MEDIATING ROLE OF LEADERSHIP QUALITY IN THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND ORGANIZATIONAL PERFORMANCE OF NIGERIAN BANKS

Abstract

The study examined the mediating role of leadership quality on the relationship between corporate governance and organizational performance with the particular reference to selected Nigerian banks. A targeted random sampling method was employed to choose Zenith Bank, Guaranty Bank, First Bank, Access Bank, and United Bank within the Osogbo metropolitan area of Osun State, Nigeria. To form the survey sample, a sample size of 98 respondents was selected applying a simple random sampling technique. A structured questionnaire was utilized to gather data from the participants. To analyze the data, Path Analysis-Structural Equation Modeling (PA-SEM) was conducted using STATA version 15. The results revealed that both leadership quality and corporate governance have direct positive effects on organizational performance. Also, corporate governance has a direct positive effect on leadership quality. Additionally, the study established that leadership quality partially mediates between corporate governance and organizational performance. This suggests that corporate governance can improve organizational performance by promoting leadership quality. The study suggests that organizations should implement effective corporate governance practices in order to improve their organizational performance. In addition to the direct effects of corporate governance on organizational performance, corporate governance can also improve organizational performance indirectly by promoting leadership quality.