Investigating the Influence of Shareholder Mechanisms on the Perceived Performance of Listed Firms in Nigeria

Authors

  • Mohammed Nuhu School of Business Management, Universiti Utara Malaysia
  • Halilu Bello Rogo Department of Economics and Management Science Kano, Nigerian Police Academy Wudil
  • Mohammed Umar Danladi Department of Business Administration, University of Abuja-Nigeria

DOI:

https://doi.org/10.26710/reads.v4i1.283

Keywords:

Transparency, accountability, company image,shareholder rights, firm performance

Abstract

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.

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Published

2020-07-25

How to Cite

Mohammed Nuhu, Halilu Bello Rogo, & Mohammed Umar Danladi. (2020). Investigating the Influence of Shareholder Mechanisms on the Perceived Performance of Listed Firms in Nigeria. Review of Economics and Development Studies, 4(1), 79-89. https://doi.org/10.26710/reads.v4i1.283