Re: duplication of corporate governance codes and the dilemma of firms with dual regulatory jurisdictions

Abstract

Purpose This paper aims to examine the evolution of corporate governance in Nigeria and how the duplication of code of corporate best practices is impacting compliance with the key recommendations of these guidelines. The issues of corporate governance and reforms especially those related to the development and implementation of code of corporate best practices have been a subject of academic discuss over the years with more research emphasis placed on developed economies. This paper intends to add the sub-Sahara Africa and the emerging economic perspective to this vibrant stream of research. Design/methodology/approach This paper adopts an explanatory approach in the review of the four different codes of corporate governance that were issued in Nigeria in the past ten years. Findings The paper demonstrated that corporate governance has been a fundamental issue of concern in Nigerian public enterprises since the country gained independence in 1960. The paper equally established that the application of recent corporate governance reforms has been challenged, not on competency grounds but rather by the proliferation of codes which have created implementation and monitoring difficulties for both the affected firms and the regulatory agencies. Originality/value Unlike other previous studies, this paper offers comprehensive analysis of corporate governance evolution in Nigeria and found through documented literatures that shortage of experienced local personnel and the absence of effective external control mechanisms have been the bane against the development of corporate governance in Nigeria. The originality of this paper also lies in being the first paper to have linked developments in the public enterprises to the renewed focus on corporate governance. This is the most inclusive paper to have identified key implications of multiplicity of corporate governance codes and the direct application of governance system within the context of the country’s socio-cultural distinctiveness.

An Interpretive Structural Model of Barriers in Implementing Corporate Governance (CG) in Pakistan

“…Sikka and Stittle (2017) proclaimed that the shareholder primacy model is dysfunctional and it is a seed of crises therefore it should be investigated carefully. Bello (2016) stated that a fundamental issue of concern in Nigerian government organizations is the implementation of CG. Recent CG reforms have been challenged by the ill-planned proliferation of codes and monitoring difficulties.…”

Empirical Study of the Relationship between Board of Director Mechanisms and Perceived Performance of Listed Firms in Nigeria

“…Therefore, in finance and management terminology, corporate governance is to solve what is called the problem of the agency which exists between stockholders or shareholders and managers. Therefore, that is what corporate governance is intended to resolve in making sure investors get their investment back, given that somebody else (managers or agents) will make ensure that all the decisions making process about how their investment or their money have utilized (Akinkoye&Olasanmi, 2014;Lawal, 2012;Lawal, 2016). Good Corporate Governance promotes the efficient and effective use of the capital within the company or firms and their return on their capital or resources (Tai, 2015).…”

“…Good Corporate Governance promotes the efficient and effective use of the capital within the company or firms and their return on their capital or resources (Tai, 2015). Corporate governance mechanisms have been identifying as method or techniques used in determining the success and outcome of every firm performance (Adjaoud et al, 2007;Clarke, 2007;Guerra et al, 2009;Lawal, 2016). Hence, this section reviews the prior relationship between the following; corporate transparency and accountability and firm performance; corporate behavior and firm performance and shareholder rights and firm performance.…”

“…The ongoing debate on the board composition in recent research had shown how important it has influences board of directors, quality deliberation and decisions making process (Ahmadi &Bouri 2017; Lawal, 2016;Ngulumbu&Aduda 2016;Pearce & Zahra 1992;Rosenstein, 1987;Tashakori&Boulton, 1985). Hence, the composition of the board has demonstrated the ability of the board of directors to exercise their controls over top management to avoid and protect shareholders' interests (Ahmadi &Bouri 2017; Lawal, 2016;Ngulumbu&Aduda 2016;Pearce & Zahra 1992). Again, board composition has impacts on the directors' ability to offer and provide strategic direction that will influence firm performance (Pearce & Zahra 1992;Baysinger&Hoskisson, 1990;Nuhu& Ahmad, 2016).…”

“…The research on the issue of agency problems between manager and shareholder (principal and agent) will for a long time remain a topic of debate. Therefore, the issue of count head or a number of peoples or directors on the board might be new but the issues and challenges it addresses are not (Ayuso&Argandoǹa, 2007;Lawal, 2016;Lawal, 2012).…”