In this paper, we examine the extent to which financial stability matters for income growth in emerging markets. Using dynamic panel estimation techniques, we explore both the stock market and banking sector dimensions of the financial system to show that both stock market volatility and non-performing loans are detrimental to income growth in these markets. We, however, find the magnitude of the impact to be relatively more pronounced when the underlying source of instability in the financial system is stock market volatility. Overall, we find the impact of financial stability on income growth to be more statistically relevant when measured using the individual indicators of financial instability as compared to their composite indicator.

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This research aims to take steps towards explaining behavioral principle-based board process as factors for effective board performance. Dominant rule-based board structure approach could not transform effective corporate functioning, thus inconclusive. Based on a survey perception of 154 respondents from Nigerian capital market participants, the study employs confirmatory factor analysis (CFA) in a structural equation modeling (SEM) approach. Other studies used EFA and in developed nations. Replicates and builds upon board process constructs - cognitive conflict, effort norms, use of knowledge and skills, and groupthink. The study concludes that the items are valid measures of the latent constructs and significantly relate to board performance. The paper links corporate governance debates to broader behavioral choices in agency perspective and employs CFA and SEM as alternative approach for the measurement and structural models, in place of the usual exploratory factor analysis (EFA). <br /><br />

The objective of this study is to determine whether employee participation yields effective board performance. To stimulatedebates inthe stakeholder theoretical perspective in an attempt to offer more inclusive approach to strengthen the existing governance structure in Nigeria.This research intends to investigate the suitability of employees participating in board’s decision-making hierarchy because of their contractual importance as wealth creators of the firm. A conceptual model is proposed and tested on public listed companies in Nigeria based on survey perception of sampled 154 respondents. The study employs in-depth confirmatory factory analysis in a structural equation modeling approach. Building upon constructs such as union relations, productivity, and skilled-labor turnover, the study found the indicator variables measure employee participation, which focused more on the board’s control, operational decisions, and strategy in monitoring, service, and networking roles. Hence, we conclude that employees as important contractual company stakeholders affect board performance. Builds on the limited research agenda for boards and corporate governance that focus on coordinating, exploring and distribution of stakes using adventurous research designs and statistical tools, especially in Nigerian emerging economy. This paper exposes the firm’s potentials as provider of sustainable and longer-term benefits not only limited to equityholders, but also to employees as wealth creators, which will improve mutual trust, harmony and confidence for more stable and productive outputs that could give visibility to income inequality. The paper provides valid measures that link corporate governance debates to broader stakeholder perspective.