Corporate governance mechanism, corporate disclosure and firm performance in Nigeria

• Main Author: Edogbanya, Adejoh
• Format: Thesis
• Language: English; English
• Published: 2018
• Subjects: HD2709-2930.7 Corporations
• Online Access: https://etd.uum.edu.my/7951/1/s95603_01.pdf; https://etd.uum.edu.my/7951/2/s95603_02.pdf; https://etd.uum.edu.my/7951/; https://sierra.uum.edu.my/record=b1698390~S1
• Institution: Universiti Utara Malaysia

Many corporate governance and disclosure studies in developed countries have established links between corporate governance and firm performance. However, in developing countries like Nigeria, very little attention has been given to transparency and disclosure in relation to firm performance. This study examines the relationship between corporate governance, corporate reporting disclosure and firm performance in Nigeria Stock Exchange (NSE) based on a sample of 62 non-financial companies in Nigeria between the years 2010 to 2013. This study considers the corporate reporting disclosure in three categories which are disclosure of board process transparency, financial process transparency, and ownership transparency. Value added intellectual capital (VAIC) is one of the proxies for firm performance other than return on assets (ROA) and Tobin’s Q. The multiple regression analysis with panel corrected standard errors (PCSEs) was used in the analysis. The findings of the study provide empirical evidence that corporate governance mechanism is significant and positively related to firm performance. The study further reveals that there is a significant relationship between transparency and disclosure and firm performance. Thus, it is recommended that disclosure of relevant information should be highly practiced by public companies in Nigeria. This study contributes immensely to the field of corporate governance. Firstly, it introduces Nigerian companies’ disclosure and transparency features. Secondly, the study expands the proxy for performance measurement by introducing VAIC method of measuring performance in Nigerian studies. Lastly and most importantly, this study considers the disclosure and transparency and internal corporate governance efficiency in Nigeria and its disclosure in the non-financial sectors of the Nigerian economy.