Corporate governance and the firm value proposition: evidence from Nigeria=Ukuphathwa kwebhizinisi kanye nesiphakamiso somthamo eliqinile: Ubufakazi obuvela e-Nigeria.

Abstract

This study investigated the relationship between compliance with the corporate governance mechanisms and the financial performance of listed non-financial firms in Nigeria from 2012 to 2019, using the compliance index and the equilibrium variable models. A compliance index was developed using the corporate governance provisions contained in the Nigerian Security and Exchange Commission (SEC) Code of 2011, which was effective from 2011 to 2019, and the Companies and Allied Matters Act (CAMA) of 1990 (as amended to date), which was also effective during the period. The agency theory was the main theoretical framework that underpinned this study. The study‟s sample was comprised of 63 listed non-financial firms, leading to 504 firm years using the panel data analysis. The research methodology was a quantitative approach based on the positivist philosophical paradigm. Using the Eviews statistical software for data analysis, the Fixed Effect estimation method was adopted. Evidence shows that during the period of the study, the compliance rate grew from 70.38% in 2012 to 71.74% in 2019. There was a negative but insignificant relationship between the corporate governance compliance index and the financial performance of the firm. A significant negative relationship existed between the Q ratio and female board membership, ROE and non-duality, and the product market share, NAT and non-duality, female board membership, and board meetings. A significant positive relationship was found between the market share and NAT. This study made 13 recommendations focusing on the enforcement of corporate governance disclosures, empowerment of the statutory audit committee, representation of the minority shareholders on boards, number of mandated board committees, frequency of meetings, inclusion of females and foreign nationals on boards, relaxing the duality requirement, fixing specific penalties for levels of corporate governance infractions, corporate governance education, and the issuance of official corporate governance ratings and scores. In addition, several policy implications were raised which are aimed at improving the corporate governance practices by listed non-financial firms to enable them to operate competitively and sustainably in the global economic renaissance.

Iqoqa Lolu cwaningo luphenye ubudlelwano phakathi kwezinqubo zokuphatha izinkampani kanye nokusebenza kwezezimali kwezinkampani ezingezona ezezezimali ezisohlwini lwase-Nigeria ngokuya nge-Tobin's Q, Return on Equity (ROE), kanye Nemali Yenzuzo Yempahla, phecelezi i- Net Asset Turnover (NAT) kusetshenziswa inkomba yokuthobela imithetho namamodeli aguquguqukayo okulingana enkathi ka-2012 kuya ku-2019. Inkomba yokuthobela yasungulwa kusetshenziswa izinhlinzeko zokuphatha izinkampani eziqukethwe kuKhomishana Yezokuphepha Nokushintshisana YaseNigeria ka-2011, eyaqala ukusebenza kusukela ku-2011 kuya ku-2019, kanye Nomthetho Wezinkampani Nezihlangene ka-1990 ( njengoba ichitshiyelwe kuze kube manje), nayo eqale ukusebenza ngaleso sikhathi. Ithiyori ye-ejensi (i-agency theory) kwakuwuhlaka lwethiyori oluyinhloko olwasekela lolu cwaningo. Isampula yocwaningo yakhiwe amafemu angewona awezezimali ohlwini lwamashumi ayisthupha nantathu (63), okuholele eminyakeni engamakhulu ayisihlanu nane (504) eqinile kusetshenziswa ukuhlaziywa kwedatha yephaneli. Indlela yocwaningo bekuyindlela yokulinganisa esekelwe kumbono wefilosofi ye-positivist. Kusetshenziswa i-software yezibalo ze-Eviews yokuhlaziya idatha, indlela yokulinganisa ye-Fixed Effect (FE) yamukelwa. Ubufakazi bubonisa ukuthi phakathi nesikhathi socwaningo, izinga lokuthobela imithetho likhule lisuka ku-70.38% ngo-2012 laya ku-71.74% ngo-2019. Kube nobudlelwano obungebuhle kodwa obungabalulekile phakathi kwenkomba yokuthobela ukubusa kwebhizinisi kanye nokusebenza kwezimali kwefemu. Ubudlelwano obubalulekile obungebuhle babukhona phakathi kwesilinganiso se-Q nobulungu bebhodi labesifazane, i-ROE nokungeyona into ekabili, kanye nesabelo semakethe yomkhiqizo, i-NAT nokungeyona into ekabili, ubulungu bebhodi labesifazane, nemihlangano yebhodi. Kutholwe ubudlelwano obuhle obubalulekile phakathi kwesabelo semakethe ne-NAT. Lolu cwaningo lwenze izincomo eziyishumi nantathu (13) ezigxile ekuphoqeleleni ukudalulwa kokuphathwa kwebhizinisi, ekuhlomiseni ikomidi lokucwaninga amabhuku, ukumelwa kwabanikazi bamasheya abambalwa emabhodini, inani lamakomiti ebhodi agunyaziwe, izikhathi zemihlangano, ukufakwa kwabesifazane nabangaphandle emabhodini, ukuxegiswa kwezinhlangothi zombili, imfuneko, ukulungisa izinhlawulo ezithile zamazinga okuphulwa kokuphathwa kwebhizinisi, imfundo ngokubusa kwebhizinisi, kanye nokukhishwa kwezilinganiso zokuphatha okusemthethweni kwebhizinisi kanye namaphuzu. Ukwengeza, imithelela eminingana yenqubomgomo yaphakanyiswa okuhloswe ngayo ukuthuthukisa izinqubo zokuphatha izinkampani yizinkampani ezingezona ezezezimali ezisohlwini ukuze zikwazi ukusebenza ngokuncintisana nangokusimeme ekuvuselelweni kabusha komnotho womhlaba.