Corporate governance research in Nigeria: a review
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Corporate governance research in Nigeria: a review Peterson K. Ozili1 Received: 24 April 2020 / Accepted: 16 October 2020 © Springer Nature Switzerland AG 2020
Abstract This paper is a literature review of recent corporate governance research in Nigeria. It identifies the recent advances and challenges in the literature and suggest some directions for future research. A comprehensive review of the recent corporate governance literature is important because it provides a basis to compare the corporate governance experience in Nigeria with the corporate governance experience in other African countries and developing countries. The findings from the literature review reveal that the board of directors is the most explored corporate governance determinant in the Nigerian corporate governance literature. Most studies focus on some corporate governance determinants, and ignore other corporate governance determinants in firms. There is some consensus that corporate governance failure in Nigeria is caused by multiplicity of factors such as lack of political will by the government to enforce corporate governance laws, deliberate refusal to comply with existing corporate governance laws by politically connected firms, weak compliance by firms, weak enforcement by regulators, and conflicting codes in the country’s corporate governance codes. Also, recent corporate governance studies do not systematically build on previous corporate governance studies. Regarding methodology, most Nigerian corporate governance studies are merely experimenting different methods of analyses without advancing the literature in a significant way. The study also finds that the 2018 Nigerian code of corporate governance solves some problems and create new problems for Nigerian firms. Keywords Corporate governance · Nigeria · Board size · Firm performance · Board of directors · CEO duality · Africa · Regulation · Ownership structure · Audit committee · Earnings management · Financial reporting JEL Classification G30 · L26 · M10 Electronic supplementary material The online version of this article (https://doi.org/10.1007/s4354 6-020-00015-8) contains supplementary material, which is available to authorized users. * Peterson K. Ozili [email protected] 1
Governors Department, Central Bank of Nigeria, Abuja, Nigeria Vol.:(0123456789)
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Introduction This paper reviews the Nigerian corporate governance literature. It analyses the current state of corporate governance research in Nigeria, and provides some directions for future research on CG in Nigeria.1 Corporate governance is defined as the system of rules, practices, and processes by which firms are directed and controlled (Raut 2003). This is the working definition of corporate governance used in this review article. Corporate scandals around the world and the East Asian crisis coupled with the poor performance of many corporations in Africa have led to increased focus on corporate governance in emerging economies. Notable examples are the corpo
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