The purpose of this paper is to examine the link between corporate governance structure and firm performance in Nigeria.
Abstract
Purpose
The purpose of this paper is to examine the link between corporate governance structure and firm performance in Nigeria.
Design/methodology/approach
The present study uses the regression model to analyze publicly available data for a sample of 107 firms quoted in the Nigerian Stock Exchange for the fiscal years 1998 to 2002.
Findings
The empirical investigations showed that ownership concentration has a positive impact on performance. Although the results revealed no evidence to support the impact of board composition on performance, there is significant evidence to support the fact that CEO duality adversely impact firm performance. The result also suggests firm size and leverage to impact on firm performance. A new variable, identified as more than one family member on the board, is found to have an adverse effect on firm performance.
Research limitations/implications
The study relied much on publicly available data for a sample of 107 listed firms in Nigeria for the fiscal years 1998 to 2002. Thus, effort should be made to look at this study in a more elaborate viewpoint and across borders.
Practical implications
Good corporate governance standards are imperative to every organization and should be encouraged for the interest of the investors and other stakeholders.
Originality/value
Interestingly, from a developing country perspective, especially in sub‐Saharan Africa, the paper is the first of its kind and offers evidence on the impact of corporate governance structure on firm performance. The paper provides useful information that is of great value to policy makers, academics and other stakeholders.
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Jennifer A.N. Andoh, Benjamin A. Abugri and Ebenezer B. Anarfo
This study aims to compare the impact of board characteristics on the performance of listed non-financial firms to the impact of board characteristics on the performance of listed…
Abstract
Purpose
This study aims to compare the impact of board characteristics on the performance of listed non-financial firms to the impact of board characteristics on the performance of listed financial firms (commercial banks) in Ghana.
Design/methodology/approach
The fixed and random effects models with generalized least square specifications are used in estimating regressions to correct for heteroscedasticity and serial correlation. Additionally, this study uses lagged models of the board variables to address the possibility of the presence of endogeneity and to generate robust estimates.
Findings
The empirical results show some similarities and differences on the impact of board characteristics on the performance of listed non-financial firms and banks. On similarities, for both non-financial firms and banks, board size is seen to have a significant non-linear impact on Tobin’s q. Also, the proportion of foreign board members shows a positively significant relationship with firm performance for both listed non-financial firms and banks. The effect of the proportion of board members with higher educational qualifications on firm performance appears to be negative and statistically significant for both sample of firms. On the other hand, the impact of board composition and board gender diversity on firm performance differs from listed banks and non-financial firms.
Research limitations/implications
The panel regressions for the listed banks were run on 63 observations because of the small sample size for the listed banks. Though enough for estimation purposes, inferences from results should be made with caution.
Originality/value
This paper, unlike most corporate governance – firm performance studies, focuses not only on listed non-financial firms but also on listed banks. From a multi-theoretical perspective, this paper provides a comparative analysis on the impact of board characteristics on financial performance of listed non-financial firms and banks.
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Ebere Ume Kalu, Augustine Chuck Arize, Sylvester Okechukwu Ilo, Ifeoma Ihegboro and Chiamaka Goodness Eze
This study investigated the interactive impact of global and domestic stock market variables on the depth of the financial system in Sub-Saharan African (SSA) countries from 1990…
Abstract
Purpose
This study investigated the interactive impact of global and domestic stock market variables on the depth of the financial system in Sub-Saharan African (SSA) countries from 1990 to 2018.
Design/methodology/approach
The study used the mean group and pooled mean group estimators for the dynamic heterogeneous panel.
Findings
The results provide strong statistical evidence that the depth of the financial system in SSA countries is influenced by a combination of local and international stock market indicators. While the local variables exert a positive influence, the global indicator tends to negatively affect the depth of the system, particularly the monetization ratio.
Practical implications
While the tendency of portfolio adjustments and reversal can be inferred, the study stresses the need for a more globalized approach to financial policy formulation and implementation even as the trend of global financializaton gets more robust and more profound.
Originality/value
This study is unique in that, unlike prior ones, it has extended the debate on the role of the stock market in financial deepening from a domestic to an international dimension. Financial policy making can be aided by the authors' findings through looking at the financial deepening-stock market linkage from both domestic and globalized perspectives.
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Zeshan Ahmad, Shahbaz Sharif, Iftikhar Ahmad, Syed Muhammad Waseem Abbas and Mussrat Shaheen
Present study investigated the influence of female descendent entrepreneur's self-compassion on the perceived succession success of small-family businesses (S-FB) with the…
Abstract
Purpose
Present study investigated the influence of female descendent entrepreneur's self-compassion on the perceived succession success of small-family businesses (S-FB) with the mediating mechanism of financial literacy.
Design/methodology/approach
The primary data was collected from 319 female descendent entrepreneurs who were designated as chairwomen, and managing director positions in their retails sector S-FBs. The purposive sampling technique was used to collect the data. The provided hypotheses are tested using the partial least square structural equation modeling (PLS-SEM) technique. This study followed multiple regression analyses to see the influence of self-compassion (mindfulness, self-isolation, self-judgment and over-identification) on financial literacy and perceived succession success.
Findings
The results reveal that female descendent entrepreneurs mindfulness and over-identification significantly increase but self-isolation decreases the likelihood of successful succession transition. Moreover, female descendent entrepreneur's financial literacy increases mindfulness and overidentification while it decreases self-isolation and improves the likelihood of succession success. However, financial literacy does not influence self-judgmental traits and perceived succession success.
Practical implications
This study highlights a vital issue, how the financial literacy of female descendent entrepreneurs manages their self-compassion and increases the likelihood of succession success. In addition, it covers a research gap and helps the S-FBs to improve their survival rate by focusing on the descendent entrepreneur's self-compassion and financial literacy.
Originality/value
This study contributes to the body of knowledge by emphasizing predictors that influence the successful succession transition to subsequent generations. This study determines the influence of self-compassion of female descendent entrepreneurs on perceived succession success and financial literacy as a mediator by using the self-control theory. The study can be useful to family business consultants, policymakers and family businesses.