CORPORATE GOVERNANCE

Corporate Governance and globalization in Nigeria

Corporate Governance and Globalization in Nigeria

Abstract

The proposed research aims to explore the concept of globalization and corporate governance in Nigeria. First of all a brief conception and discussion is undertaken about the prevalence of globalization and corporate governance in Nigeria. In the second part of the paper a discussion is done to explore the difference between the prevalence of globalization and corporate governance in Nigeria and developed countries.

Aim

In today's era where with the help of the globalization and implementation of corporate governance different countries are moving ahead in the journey of success and growth o the other hand there is Nigeria that is still facing its economic problems. So, the purpose of this research is to find out and reveal various factors and reasons that impede the progress of the country. This paper reveals how the factors of globalization and corporate governance are helping out other countries in improving their progress and how these factors of globalization and corporate governance are not utilized by the administration of the country.

Research Question

The quest for this research is to know about the differences in globalization and corporate governance practices of Nigeria and other developing countries.

Objectives of the Research

The objectives of this research are as follows:

To explore the variegated aspects and information about the corporate governance and globalization in Nigeria.

To compare the position and prevalence of corporate governance and globalization in developing countries and in Nigeria.

Corporate Governance and Globalization in Nigeria

In Nigeria, the concept of the corporate governance is considered as fresh and new. The research done in this field and the area is very limited, and there is the dearth of availability of literature about it. Various researches done by the academicians and the heads of the corporate sectors about the prevalence and presence of corporate governance, in Nigeria suggest that for the development of the proper structure of corporate governance, the institutional, legal and capital development are of utmost importance. For the availability, of the corporate governance, the corporate heads of Nigeria has adopted the Anglo-American system of corporate governance, which is the common law practice in United States and United Kingdom (Obadan 2001, 35). According to this system of Anglo-American corporate governance shareholders make the selection of the executive as well as independent and non executive members of the board. In order to encourage the flow of investments board members place a higher premium on the shareholders. Research and studies done in this regard shows that the implementation of codes of conduct related to the corporate governance becomes difficult in Nigeria as a result of the absence of law enforcement capacity. The absence of procedures related to the thorough and rigorous selection, evaluation and replacement of CEOs also makes it difficult to implement the codes of conduct of corporate governance. Another factor that can be considered as the restriction in the way of the implementation of the codes of corporate governance is that retired and replaced CEOs become members of the board which can be ...