Boardroom Strategies And Shareholder Returns: Insights From Nigeria’S Banking Sector
Oladipo, Samuel Ayodele
Department of Business Administration, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria
Bamidele, Grace Ifeoma
Department of Business Administration, Olabisi Onabanjo University, Ago-Iwoye,
Abstract
The contemporary business environment is characterized by intense competition, compelling organizations to adopt effective strategies that guide corporate operations and ensure long-term survival. In the banking sector, boards of directors play a critical role in formulating strategic and operational policies that not only sustain competitive advantage but also safeguard shareholder interests. While corporate strategies focus on long-term objectives such as market expansion, product development, and competitive positioning, operational strategies are designed to achieve short-term goals, streamline daily functions, and reinforce broader corporate strategies. These operational strategies are particularly vital in the banking industry, given its pivotal role in economic stability and growth. By directing managerial actions and aligning them with shareholder expectations, boards act as the fulcrum of corporate governance, ensuring accountability and enhancing shareholder compensation. This study therefore examines the relationship between strategic board operations and shareholder compensation in the Nigerian banking sector. Drawing from extant literature, it highlights how effective governance structures and operational strategies contribute to improved performance, value creation, and sustainable competitiveness. The findings underscore the need for Nigerian banks to strengthen board-level strategy formulation and execution as a pathway to balancing both organizational performance and shareholder value.