Corporate governance and equity value: empirical evidence from Nigerian firms

IF 5.5 Q1 BUSINESS

Corporate Governance-The International Journal of Business in Society Pub Date : 2023-10-09 DOI:10.1108/cg-12-2020-0579

Isah Shittu, Ayoib Che-Ahmad

{"title":"Corporate governance and equity value: empirical evidence from Nigerian firms","authors":"Isah Shittu, Ayoib Che-Ahmad","doi":"10.1108/cg-12-2020-0579","DOIUrl":null,"url":null,"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.","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.5000,"publicationDate":"2023-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Corporate Governance-The International Journal of Business in Society","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/cg-12-2020-0579","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}

引用次数: 0

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.

查看原文本刊更多论文

公司治理与股权价值:来自尼日利亚公司的经验证据

本研究的目的是检验选定的公司治理(CG)变量对尼日利亚上市公司股权价值倍数(EVM)的影响。该研究使用了2014年至2018年在尼日利亚证券交易所(NSE)上市的100家公司的数据。采用广义矩量法估计两者之间的关系，采用主成分分析法生成evm的复合值。研究结果显示，董事会规模、董事会独立性、董事会性别多样性、管理层持股、审计委员会独立性、CG信息披露和EVM之间存在显著的关联，显著性水平为1%。研究局限/启示本研究仅限于披露企业绩效管理和企业风险管理信息的公司。这些实证研究结果为代理理论提供了支持，该理论建议使用各种CG变量作为减少委托代理冲突的方法。这也从性别多样性的角度支持了资源依赖理论。独创性/价值这项研究是一项开创性的努力，旨在揭示一些CG变量与evm之间的关系，重点关注在印度证券交易所上市的公司。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Corporate Governance-The International Journal of Business in Society BUSINESS-

CiteScore

11.20

自引率

33.90%

发文量

期刊介绍： Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.