Isah Shittu and Ayoib Che-Ahmad
The purpose of this study is to examine the impact of selected corporate governance (CG) variables on the equity value multiple (EVM) of listed firms in Nigeria.
Abstract
Purpose
The purpose of this study is to examine the impact of selected corporate governance (CG) variables on the equity value multiple (EVM) of listed firms in Nigeria.
Design/methodology/approach
The research used data obtained from 100 firms listed on the Nigerian Stock Exchange (NSE) from 2014 to 2018. A generalized method of moment was used to estimate the relationship, whereas principal component analysis was used to generate composite values of EVMs.
Findings
Findings reveal a significant association between board size, board independence, board gender diversity, managerial shareholding, audit committee independence, disclosure of CG information and EVM at a 1% level of significance.
Research limitations/implications
This study was limited to firms that disclosed information on CG and EVMs.
Practical implications
These empirical findings lend support to agency theory, which suggests the use of various CG variables as a way of reducing principal-agent conflicts. It also lends support to resource dependency theory from a gender diversity perspective.
Originality/value
The study is a pioneering effort toward unlocking the relationship between some CG variables and the EVMs, focusing on firms listed on the NSE.
Details
Keywords
Oluyemi Theophilus Adeosun and Ayodele Ibrahim Shittu
This study examines the nexus between entrepreneurship through small–medium enterprise (SME) business formation and the growth of the Nigerian economy. Furthermore, this paper…
Abstract
Purpose
This study examines the nexus between entrepreneurship through small–medium enterprise (SME) business formation and the growth of the Nigerian economy. Furthermore, this paper seeks to explore the link between small enterprise development and econo.
Design/methodology/approach
The paper focused on secondary data for the period 1990–2016 for macro parameters including, registered small and medium scale enterprise, nominal gross domestic product, employment, total labor force and population. Forecasting technique was applied to obtain data for missing trends. Quantitative analytical techniques used include the dynamic method of the error correction model (ECM) and Johansen co-integration test for a long-run correlation.
Findings
The result shows an increasing number of SME formation which has also led to the growth of the economy. However, an increase in the amount of micro-small and medium scale enterprises did not contribute to the development of the economy more than existing businesses. The employment elasticity is positive and significant and shows that the contribution of entrepreneurship regarding employment is the most essential factor that advances economic growth and reduction of unemployment.
Originality/value
The paper examines how the persistent increase in small and medium enterprise formation improves the growth and development of the Nigerian economy, employing the ECM approach.