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Article
Publication date: 9 October 2023

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.

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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

Corporate Governance: The International Journal of Business in Society, vol. 24 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

Available. Open Access. Open Access
Article
Publication date: 1 July 2021

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…

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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.

Details

Review of Economics and Political Science, vol. 7 no. 4
Type: Research Article
ISSN: 2356-9980

Keywords

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