An Assessment Of Corporate Governance And Firm Performance: Empirical Evidence From Selected Listed Companies In Nigeria

Project and Seminar Material for Business Administration and Management BAM

An Assessment Of Corporate Governance And Firm Performance: Empirical Evidence From Selected Listed Companies In Nigeria


Abstract


This study investigates the relationship that exists between corporate governance and firm performance of some selected companies listed on the Nigerian Stock Exchange. The intent of the study is to determine whether corporate governance mechanisms- CEO duality, board size audit committee independence, and ownership concentration have an impact on firm performance surrogated by return on assets (ROA); return on equity (ROE), profit margin (PM). It provides empirical evidence for fifty two (52) non-financial firms in Nigeria for a period of 2003 to 2008. The Generalised Least Square (GLS) regression is employed to examine the relationship existing between the variables.

The results reveal that board size, audit committee independence, ownership concentration have a significant relationship with return on equity and profit margin. It is also observed that CEO duality has no impact on firm performance. The advocacy is for the Securities and Exchange Commission to take into cognisance industry specific effects before formulating codes of corporate governance that determine the characteristic of the audit committee or the board structure. Proposition is also made for the Corporate Governance Committee of companies to endeavour to do a regular appraisal of their corporate governance compliance status so as to understand its effect on performance


How To Get The Complete Material For An Assessment Of Corporate Governance And Firm Performance: Empirical Evidence From Selected Listed Companies In Nigeria


Project Material Download

3,000 Naira


The Complete Material will be Sent to You in Just 2 Steps

Quick & Simple…


Step One Purchase

Make a Mobile Transfer or POS Payment of ₦3,000 to any of the Account Below

Access Bank PlcAccount No.: 0811003731
Name: Samphina Academy
Account Type: Current
Zenith BankAccount No.: 1225513212
Name: Samphina Academy
Account Type: Current

Or CLICK HERE To Pay With Debit Card

FOR CLIENTS OUTSIDE NIGERIA
CLICK HERE To Pay With Debit Card ($15)
GHANA – Make Payment of 80 GHS to MTN MoMo, 0553978005, Douglas Osabutey 

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  • Payment Details
  • Email Address 
  • An Assessment Of Corporate Governance And Firm Performance: Empirical Evidence From Selected Listed Companies In Nigeria

The Complete Material Will Be Sent To Your Email Address After Receiving Your Details
T & C Apply


  Contact Our Help Desk


⚠️ Need a different topic? Perform a quick search



Get A Complete Business Plan For Any Business In Nigeria

Business Plan for Businesses in Nigeria

  Business Plans in Nigeria


Disclaimer


This research material “An Assessment Of Corporate Governance And Firm Performance: Empirical Evidence From Selected Listed Companies In Nigeria” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.

samphina.com.ng is only providing this material “An Assessment Of Corporate Governance And Firm Performance: Empirical Evidence From Selected Listed Companies In Nigeria” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.


Frequently Asked Questions


Do corporate governance measures affect firm performance?

The governance literature has considered various measures of corporate governance and has studied the impact of these governance measures on firm performance.

What characterizes a company’s governance?

Finally, while board characteristics, corporate charter provisions, and management compensation features do characterize a company’s governance, construction of a governance index requires that the above variables be weighted. The weights a particular index assigns to individual board characteristics, charter provisions, etc. is important.

Is the current financial performance of the firm associated with performance?

The current financial performance of the firm is likely to be associated with future performance. Following model. Including this variable creates a lagged variable, which captures, at least in part, the dynamic adjustment of ROE. Data screening. The criteria used to develop the sample for testing the hypotheses is presented in Table 1. 282.

Does Sarbanes-Oxley affect corporate governance and firm performance?

In Bhagat and Bolton (2013), we study the impact of Sarbanes-Oxley (SOX) on the relationship between corporate governance and company performance. A significant part of SOX and other exchange requirements increase the role of independent board members. We find a shift in the relationship between board independence and firm performance after 2002.

What are the aspects of corporate governance that influence firm performance?

There are several aspects and dimensions of corporate governance, which may influence a firm’s performance but this study focused on three aspects namely ownership concentration, CEO duality and Board’s Independence. Firm’s performance has been measured through Return on Equity (ROE) & Return on Assets (ROA).

Do CEOs’ networks affect corporate governance?

Hallock (1997) and Westphal and Khanna (2003) emphasize the role of networks among CEOs that serve on boards, and the adverse impact on the governance of such firms. Ex ante, there is no reason to believe that this variable will be correlated with firm performance.

How do you measure the performance of a firm’s performance?

Firm’s performance has been measured through Return on Equity (ROE) & Return on Assets (ROA). Strong and positive impact of corporate governance on firm’s performance has been seen.

Is there a single model of corporate governance?

However, there is no single model of corporate governance. Governance practices vary not only across countries but also across firms and industry sectors. However, one of the most striking differences between countries’ corporate governance systems is in the ownership and control of firms that exist across countries.

What is financial performance’?

What is ‘Financial Performance’. Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues.

What is the significance of financial performance measurement?

Significance of Financial Performance Measurement: The interest of various related groups is affected by the financial performance of a firm. The type of analysis varies according to the specific interest of the party Involved: Trade creditors: interested in the liquidity of the firm (appraisal of firm’s liquidity)

How does financial performance affect the interest of the related groups?

The interest of various related groups is affected by the financial performance of a firm. The type of analysis varies according to the specific interest of the party Involved: Trade creditors: interested in the liquidity of the firm (appraisal of firm’s liquidity)

Why is financial performance important to investors?

The term is also used as a general measure of a firm’s overall financial health over a given period. Analysts and investors use financial performance to compare similar firms across the same industry or to compare industries or sectors in aggregate. Financial performance tells investors about the general well-being of a firm.

What is Sarbanes-Oxley and corporate governance?

Sarbanes Oxley and corporate governance is how the federal government controls different aspects of corporate business practice. The Sarbanes-Oxley Act (often shortened to SOX) was passed in 2002 as a response to the numerous corporate scandals that occurred across the United States.

Does the Sarbanes-Oxley Act affect the value of private firms?

While criticism of the Sarbanes-Oxley Act of 2002 (SOX) typically focuses on its negative impact on small public companies, this study uses acquisition data to empirically investigate whether the Sarbanes-Oxley Act impacts the value of private firms. This study presents strong evidence that the private firm discount was greater post-SOX.

What is the Sarbanes-Oxley Act?

Benefits of Good Corporate Governance Sarbanes Oxley and corporate governance is how the federal government controls different aspects of corporate business practice. The Sarbanes-Oxley Act (often shortened to SOX) was passed in 2002 as a response to the numerous corporate scandals that occurred across the United States.

How does Sox impact corporate governance?

Before SOX, the federal regime comprised disclosure requirements instead of substantive corporate governance mandates, which were deemed to be states’ area of jurisdiction and accordingly left to state corporate law (Romano 2005). SOX changes this mechanism by making explicit provisions and directions for the SEC. 

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.