Corporate governance regulation: a practice theory perspective

Abstract

Employing Bourdieu's practice theory, this paper explores factors that influence corporate executives' behaviour towards corporate governance regulation. Drawing insights from a weak institutional environment (Nigeria) and relying on a qualitative research methodology (semi-structured interviews with 31 executives), this research uncovers how nine nuanced situational and cultural field factors determine executives' regulatory response to the severity of punishment, the certainty of penalties, and the cost-benefit compliance considerations. The study further explains how sequential rationalisation between the severity and certainty of punishment contributes to the regulatory apathy that executives exhibit. Theoretically, this study demonstrates how practice theory components (habitus, capital, and field) blend to establish executives' regulatory practice.

Board diversity in Mauritius: a practice theory perspective

“…Furthermore, Soobaroyen and Mahadeo (2008) note the influence of social context on corporate governance code compliance decisions. Our findings also support the view that social contexts play an important role in shaping board diversity practices and further supports the notion that corporate governance practices are the result of unique institutional arrangements (Soobaroyen and Mahadeo, 2008;Adegbite et al, 2012;Chizema et al, 2015;Nakpodia et al, 2021).…”

Corporate governance reform in Nigeria: upstream and downstream interventions

“…NCCG (2018) also responded to calls for a code that recognises sectoral differences. It is crucial to note that there are industry-specific corporate governance codes in addition to NCCG (2018) While these regulations have increased governance consciousness among stakeholders, multiple challenges continue to plague Nigeria's corporate governance (Osemeke and Osemeke, 2017;Nakpodia et al, 2021). These challenges can be classed into three categoriesregulatory, business environment and normative.…”

“…While these regulations have increased governance consciousness among stakeholders, multiple challenges continue to plague Nigeria’s corporate governance (Osemeke and Osemeke, 2017; Nakpodia et al , 2021). These challenges can be classed into three categories – regulatory, business environment and normative.…”

“…The regulatory problems highlight concerns triggered by the existing regulatory frameworks. These include ineffective regulatory structure (Adegbite, 2012; Nakpodia et al , 2021), weak protection of minority shareholder rights (Areneke and Kimani, 2019) and multiple regulations (Bello, 2016; Nakpodia et al , 2018). In addition to regulatory challenges, corporate governance in Nigeria suffers from a disruptive business environment.…”

“…religion, ethnicity, culture) networks and relationships (Booth-Bell, 2018). Instead, social capital is used in ways that frustrate corporate governance (Osemeke and Osemeke, 2017; Nakpodia et al , 2021). Adekoya (2011) adds that the falling standard of education intensifies normative concerns.…”