Corporate strategy is part
of managerial economics that described the scope and direction of an
organization over a long period of time. Corporate strategy is the process of
the overall scope and direction of a corporation and the way in which its
various business operations work to achieve their goals. This project is
concerned about the responsibility among different participants in different
organization such as the board, managers, shareholders, and other stakeholder
and spells out the rules and procedures for making decisions on corporate
affairs. Financial performance is an important concept that relates to the way
and manner in which human, material and financial resources available to an
organization and is judiciously applied to achieve the overall corporate
objectives (Young, 2003).Since the 1970, a growing number of studies have been
going on linking corporate polices and performance with governance. The reason
being that, allegations were not tested using the corporate governance
variables and performance indices. Corporate scandals around the world in
recent years contributed to raising awareness among managers, investors and
regulators and in many countries to produce quantitative measures on
governance, and estimate their impact on the decision-making process of
firms.Hence, financial scandals around the world and the recent collapse of
major corporate institutions in the USA, South East Asia, European and Nigeria
such as Adelphia, Enron, world’s corn, commerce banks and recently shaken
investor’s confidence in the capital markets and the efficiency or existing
corporate strategy practices in promoting transparency and accountability. This
has revealed the need for practice of good corporate strategy and governance.

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STATEMENT OF THE PROBLEM