CORPORATE GOVERNANCE AND FIRMS PERFORMANCE

Corporate Governance and Firms Performance With reference to Nigerian Listed Firms

Abstract

This paper hunts for to analyze the connection between four business governance means (board dimensions, board composition, head boss rank and review committee) and two firm presentation assesses (return on equity, ROE, and earnings margin, PM), of a experiment of 20 Nigerian recorded companies between 2000 and 2006. Using section methodology and OLS as a procedure of estimation, the outcomes supply clues of a affirmative important connection between ROE and board dimensions as well as head boss status. The significance of this is that the board dimensions should be restricted to a sizeable restrict and that the mails of the head boss and the board seating should be used by by distinct persons. The outcomes farther disclose a affirmative important connection between PM and head boss status. The study, although, could not supply a important connection between the two presentation assesses and board composition and review committee. These outcomes are reliable with former empirical studies.

Table of Contents

ABSTRACTII

CHAPTER 01: INTRODUCTION1

Outline of the Study1

Problem Statement1

Rationale1

Significance2

Hypothesis2

Research Questions2

Theoretical Frame work3

Limitation of the Study3

Ethical concern4

Reliability5

Validity6

CHAPTER 2: LITERATURE REVIEW7

Corporate governance measures in Nigeria7

The roles of the board of directors7

The CEO and Management8

Shareholders Rights and Privilege8

Country-level Evidence on the Relationship between CG Quality and performance9

Firm-level Evidence on the Relationship between CG Quality, Performance and Valuation10

Importance of Easier Access to External Finance11

Evidence of Expropriation12

CHAPTER 3: METHODOLOGY14

Research Design14

Research Method (Qualitative/Quantitative)14

Primary or lesser / Qualitative or Quantitative14

Definition of (Qualitative/Quantitative) Research14

Quantitative Research14

Mix Approach15

Sample18

Data Variable Description19

Empirical results and discussion20

Data Collection Method21

Descriptive Statistics21

REFERENCES23

TIME FRAME31

CHAPTER 01: INTRODUCTION

Outline of the Study

The term "Corporate Governance" has been identified to mean different things to different people. Magdi and Nadereh (2002) stress that corporate governance is about ensuring that the business is run well and investors receive a fair return. OECD (1999) provides a more encompassing definition of corporate governance. It defines corporate governance as the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company's objectives are set and the means of attaining those objectives and monitoring performance. This definition is in line with the submissions of, Wolfensohn (1999) Uche (2004) and Akinsulire (2006).  

Problem Statement

This study is a contribution to the ongoing debate on the examination of the relationship that exists between corporate governance mechanisms and firm performance. Mixed and tenuous findings have been made from previous studies especially those ones that were conducted in the developed nations, particularly Nigeria.  

Rationale

Effective corporate governance reduces "control rights" shareholders and creditors confer on managers, increasing the probability that managers invest in positive net present value projects (Shleifer and Vishny, 1997). Thus, the relationships of the board and management, according to Al- Faki (2006), should be characterized by transparency to shareholders, and fairness to ...