Effect of Ethical Leadership on the Financial System Transformation of Niger Mills Company Limited, Calabar
Abstract
The financial system transformation is marred by a lack of ethical leadership initiatives that could contribute to firm competitiveness. This study examined transparency and financial reporting quality, access to capital and investors' trust, and mitigation of financial risk and fraud in Niger Mills Company Limited, Calabar. A Stewardship Theory was to explain how stewardship is prioritized for sustainability to drive transformation in the financial system. The sample size of the study was 143 workers, and a structured questionnaire was used to facilitate data collection. Content and face validity, along with Cronbach's alpha, were used to assess the reliability of the data. Descriptive statistics and multicollinearity test using the variance inflation factor (VIF) were used to assess the accuracy of the data set. The hypotheses was tested using Multiple Regression Analysis and the finding revealed that transparency and financial reporting quality (Beta = 0.662, P<0.05), increased access to capital and investor trust (Beta = 0.654, P<0.05), and mitigation of financial risk and fraud (Beta = 0.621, P<0.05) significantly affect the financial system transformation in Niger Mills Company Limited, Calabar. The study concluded that the practice of ethical leadership drives organizational decisions based on honesty and integrity, which improve the transformation of the financial system for economic health. It is recommended that the management prioritize reliable and accurate reporting to foster a corporate culture of integrity and safeguards against fraud. The management should commit to increased access to capital and investor trust to help secure market stability and lower the cost of capital to promote socially responsible investment and good governance for business growth. The management should commit to addressing vulnerability proactively to help protect stakeholder trust and prevent loss of revenue that threatens the viability of a firm.