Investigating the Influence of Shareholder Mechanisms on the Perceived Performance of Listed Firms in Nigeria
Keywords:Transparency, accountability, company image,shareholder rights, firm performance
The current debate on the issues of shareholder rights to firm performance has grown as a topic of research both in the developed and emerging economy. There is serious concern regarding the effectiveness of the board transparency and accountability, company image and the rights of the shareholders in recent times. This paper investigated the influence of shareholders mechanisms on the perceived performance of listed firms in Nigeria. The study is guided byagency theory and supported by the stewardship theory. The questionnaire was used as an instrument for data collection. 247 questionnaires were administered with 117 duly completed and returned. Hence, the number of completed valid questionnairesis 114. However, data were analysed using Partial Least Square Structural Equation Modeling (PLS-SEM). Empirical findings showed that board transparency/accountability and shareholder right were significantly and positively related to perceived firm performance. Whilethe company image did not show any significant link to perceived firm performance.Hence, based on the researches knowledge, this is the first of its kind to adopt primary data to investigate the influence of shareholders’ rights mechanisms on the perceived performance of listed firms in Nigeria. Therefore, the findings of this study,provide researchers, policymakers, firms, stakeholders, and the agencies of the government with a better picture of the transparency and accountability and the right of the shareholder. The study recommends that listed firms in Nigeria should adhere to professional ethics and best business practices such as financial prudence and accountability to their board of directors.
Adegbite, E. (2015). Good corporate governance in Nigeria: Antecedents, propositions, and peculiarities. International Business Review, 24(2), 319-330. Ararat, M., Black, B. S., &Yurtoglu, B. B. (2017). The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey. Emerging Markets Review, 30, 113-132. Armour, J., Enriques, L., Hansmann, H., &Kraakman, R. (2017). The Basic Governance Structure: The Interests of Shareholders as a Class Epstein, M. J., Buhovac, A. R., &Yuthas, K. (2015). Managing social, environmental and financial performance simultaneously. Long range planning, 48(1), 35-45. Fernández-Gago, R., Cabeza-García, L., & Nieto, M. (2016). Corporate social responsibility, the board of directors, and firm performance: an analysis of their relationships. Review of Managerial Science, 10(1), 85-104. Ferro, C., Ferro, C., Padin, C., Padin, C., Svensson, G., Svensson, G., &Høgevold, N. M. (2017). Validating a framework of stakeholders in connection with business sustainability efforts in supply chains. Journal of Business & Industrial Marketing, 32(1), 124-137. Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity, and performance. Tourism
Review of Economics and Development Studies Vol. 4, No 1, June 2018
Management, 60, 418-429. Gómez-Bezares, F., Przychodzen, W., &Przychodzen, J. (2016). Corporate Sustainability and Shareholder Wealth—Evidence from British Companies and Lessons from the Crisis. Sustainability, 8(3), 276.
Hair, J. F., Ringle, C. M., &Sarstedt, M. (2014). Partial least squares structural equation modeling: Rigorous applications, better results, and higher acceptance. Long Range Planning, 46(1-2), 1–12 Harvey Pamburai, H., Chamisa, E., Abdulla, C., & Smith, C. (2015). An analysis of corporate governance and company performance: a South African perspective. South African Journal of Accounting Research, (ahead-of-print), 1-17. Jizi, M. (2017). The Influence of Board Composition on Sustainable Development Disclosure. Business Strategy and the Environment. Johl, S. K., Kaur, S., & Cooper, B. J. (2015). Board characteristics and firm performance: evidence from Malaysian public listed firms. Journal of Economics, Business, and Management, 3(2). Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610. Krishnamurti, C., Pensiero, D., &Velayutham, E. (2016). Determinants of Defence Industry Corruption Risk: Firm-Level Empirical Evidence Using Transparency International’s Anti-Corruption Index. The Singapore Economic Review, 1650005.
Lawal, B. (2016). Re: Duplication of corporate governance codes and the Dilemma of firms with dual regulatory jurisdictions. Corporate Governance: The International Journal of Business in Society, 16(3), 2–19. Mugesani, P. A. (2017). The role of Internal Corporate Social Responsibility Activities on Employees’ commitment to Firms Listed in The Nairobi Stock Exchange. Strategic Journal of Business & Change Management, 4(1). Nasiru, A., Keat, O. Y., & Bhatti, M. A. (2015). Moderating Role of the Perception of University Support on the Relationship between Perceived Effective Entrepreneurship Education and Perceived Creativity Disposition on Entrepreneurial Intention. International Journal of Management Research and Reviews, 5(5), 302. Nath, S. D., Islam, S., &Saha, A. K. (2015). Corporate Board Structure and Firm Performance: The Context of Pharmaceutical Industry in Bangladesh. International Journal of Economics and Finance, 7(7), p106.
Nuhu, M. and Ahmad, B. S. (2016). Investigating the issues and challenges of corporate governance in Nigerian, A Peer Reviewed International Journal of Asian Academic Research Associates, 3(12), 93-122.
Nuhu, M., & Ahmad, B. S. (2017). Board composition and performance of listed firms in Nigeria: mediated and moderated model. Academic Journal of Business and Retail Management Research, 3(11), 25-38 Nuhu, M., and Hussaini, S.M., (2017). Empirical Study of the Relationship between Board of Director Mechanisms and Perceived Performance of Listed Firms in Nigeria. Journal of Accounting and Finance in Emerging Economies, 3(2) 161-180. http://publishing.globalcsrc.org/ojs/index.php/jafee
Nuhu, M., & Ahmad, B. S. (2017). Does corporate governance matter? Issues and challenges of the code of best practice in Nigerian. Academic Journal of Business and Retail Management Research, 3(11), 116-123 Pérez, A., Pérez, A., López, C., López, C., García-De LosSalmones, M. D. M., &García-De LosSalmones, M. D. M. (2017). An empirical exploration of the link between reporting to stakeholders and corporate social responsibility reputation in the Spanish context. Accounting, Auditing & Accountability Journal, 30(3), 668-698. Rettab, B., Brik, A. B., &Mellahi, K. (2009). A study of management perceptions of the impact of corporate social responsibility on organizational performance in emerging economies: the case of Dubai. Journal of Business Ethics, 89(3), 371-390.
Salkind, N. J. (1997). Exploring Research (3rd ed). Upper Saddle River, NJ; Prentice Hall Samaduzzaman, M., Zaman, F., &Quazi, Z. (2015). Literature Review on Corporate Governance Structure and Performance in Non-Financial Bangladesh Firms. Asian Journal of Finance &
Review of Economics and Development Studies Vol. 4, No 1, June 2018
Accounting, 7(1), 96-104. Sanusi, L. S. (2012). Banking reform and its impact on the Nigerian economy. CBN Journal of Applied Statistics, 2(2), 115-122. Zahra, S. and J. Pearce (1989). Boards of directors and financial performance: a review and integrative model, Journal of Management, 15(2), 291-334. Zehir, C., Ç?nar, F., &?engül, H. (2016). The role of Stakeholder Participation between Transparency and Qualitative and Quantitive Performance Relations: An Application at Hospital Management. Procedia-Social and Behavioral Sciences, 229, 234-245.