Effect of Corporate Governance Practices On the Performance of Public Enterprises: A study of some selected Public Enterprises in Enugu State

Abstract

The study examined the effect of corporate governance practices on the performance of public
enterprises in Enugu State, Nigeria. A survey research design was adopted for the study. The
population comprised 2,868 staff drawn from selected public enterprises, namely the
University of Nigeria Teaching Hospital, Enugu; National Orthopaedic Hospital, Enugu;
Federal Neuropsychiatric Hospital, Enugu; Nigeria Television Authority (NTA), Enugu; and
the Federal Radio Corporation of Nigeria (FRCN), Enugu. Using Taro Yamane’s formula, a
sample size of 625 respondents was determined. Data were collected through structured
questionnaires and analyzed using descriptive statistics, while regression analysis was
employed to test the stated hypotheses. The findings revealed that board composition has a
significant effect on the efficiency of public sector organizations in Enugu State. The study
also found that board independence significantly influences efficient service delivery,
indicating that independent boards enhance objectivity and reduce undue interference in
organizational decision-making. Furthermore, board accountability was found to have a
significant positive impact on service quality in public sector organizations, emphasizing the
importance of responsibility, transparency, and answerability among board members.
Consequently, the study recommended, among other measures, that public sector organizations
in Enugu State should institutionalize robust accountability mechanisms for board members
and strengthen governance frameworks to improve overall organizational performance.