Corporate governance structure and firm performance in developing economies: evidence from Nigeria

摘要

Purpose - The purpose of this paper is to examine the link between corporate governance structurernand firm performance in Nigeria.rnDesign/methodology/approach - The present study uses the regression model to analyze publiclyrnavailable data for a sample of 107 firms quoted in the Nigerian Stock Exchange for the fiscal years 1998rnto 2002.rnFindings - The empirical investigations showed that ownership concentration has a positive impact onrnperformance. Although the results revealed no evidence to support the impact of board composition onrnperformance, there is significant evidence to support the fact that CEO duality adversely impact firmrnperformance. The result also suggests firm size and leverage to impact on firm performance. A newrnvariable, identified as more than one family member on the board, is found to have an adverse effect onrnfirm performance.rnResearch limitations/implications - The study relied much on publicly available data for a sample ofrn107 listed firms in Nigeria for the fiscal years 1998 to 2002. Thus, effort should be made to look at thisrnstudy in a more elaborate viewpoint and across borders.rnPractical implications - Good corporate governance standards are imperative to every organizationrnand should be encouraged for the interest of the investors and other stakeholders.rnOriginality/value - Interestingly, from a developing country perspective, especially in sub-SaharanrnAfrica, the paper is the first of its kind and offers evidence on the impact of corporate governancernstructure on firm performance. The paper provides useful information that is of great value to policyrnmakers, academics and other stakeholders.