Corporate governance practices and foreign direct investment: the case of Nigerian listed companies

2018 ◽  
Vol 8 (4) ◽  
pp. 312
Author(s):  
Ezekiel Oluwagbemiga Oyerogba
Keyword(s):  
Corporate Governance ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Listed Companies ◽  
Governance Practices

scholarly journals Foreign Direct Investment: International Strategies by Business Groups

2018 ◽  
pp. 7-22
Author(s):  
Jorge Pelayo Maciel ◽  
Manuel Alfredo Ortiz Barrera ◽  
Aimee Pérez Esparza
Keyword(s):  
Corporate Governance ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Relationship ◽  
Business Groups ◽  
Foreign Company ◽  
Panel Analysis ◽  
Negative Relation ◽  
Concentrated Ownership ◽  
International Strategies

This research analyses the decision of foreign direct investment (FDI) followed by business groups, identifies two forms: acquisition and minority purchase of foreign company shares. Analyses how it affects the performance of such groups. Also includes the concentration of property since it forms part of corporate governance. In order to achieve this, a data panel analysis with information of 39 business groups and a total of 3,443 subsidiaries and that have also made FDI in a period ranging from 2012 to 2015. The findings were that the minority purchase of shares achieves a positive relationship with performance and clearly shows that the company's concentrated ownership has a negative relation to performance.

Promoting Foreign Direct Investment

2016 ◽  
pp. 138-146
Author(s):  
Jose J Haspa DeLarosiere ◽  
Maria DiGabriele
Keyword(s):  
Corporate Governance ◽  
Foreign Direct Investment ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Direct Investment ◽  
Signaling Mechanism ◽  
Analysis And Evaluation ◽  
Signaling Device ◽  
Monitoring Tools ◽  
Corporate Social

If audits serve as formidable internal monitoring tools which facilitate corporate governance, and Corporate Social Responsibility has been proven to serve as “an extension of corporate governance”, as well as a signaling device, are both tools not instrumental in promoting Foreign Direct Investment? Through an analysis and evaluation of the literature relating to audits and Corporate Social Responsibility, this chapter aims to investigate the above claim and question on how Corporate Social Responsibility, as “an extension of corporate governance”, as well as a signaling mechanism, could facilitate and promote Foreign Direct Investment.

A theoretical and econometric evaluation of corporate governance and capital structure in JSE-listed companies

2019 ◽  
Vol 19 (5) ◽  
pp. 1063-1081 ◽  
Author(s):  
Navitha Singh Sewpersadh
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Audit Committee ◽  
Firm Growth ◽  
Listed Companies ◽  
Annual Reports ◽  
Ceo Duality ◽  
Content Type ◽  
Governance Practices ◽  
Director Ownership

PurposeA vital resource for attracting investments and boosting economic growth is compliance with corporate-governance practices. To achieve firm growth, businesses often rely on leverage as a source of finance, which has tax-saving benefits but could attract financial distress costs. In this context, this study aims to examine the relationship between corporate governance and the use of debt financing in Johannesburg Stock Exchange (JSE)-listed companies.Design/methodology/approachThis study used a six-year period to examine 713 annual reports in an unbalanced panel of 130 JSE-listed companies from 2011 to 2016. The empirical econometric methodology used was the two-step difference generalised method of moments estimation model, which is robust in controlling endogeneity and potential bi-directional causality between leverage and corporate governance.FindingsThis study illustrated that corporate governance practices and firm-specific variables such as profitability, firm size and firm age have a significant influence on the capital structure decisions of JSE-listed firms. This study found support for four out of the six hypotheses. CEO duality and director ownership are positively correlated with leverage, whereas audit committee independence and board size are negatively correlated with leverage. This study also found contraventions of board independence, audit committee independence and CEO duality. The technology sector was the least compliant, with only 40 per cent of their boards being independent. The consumer-services sector had the maximum presence of CEO duality (7 per cent). The industrial sector had the highest average director ownership (18 per cent). The heath-care sector had 28 per cent of their audit committees in contravention of the independence rule.Practical implicationsA useful analysis of the theoretical frameworks used by academic writers are provided. This study revealed the governance practices contravened by the relevant sectors, as well as the associations between corporate governance and leverage.Originality/valueThe study contributes to the literature on capital structure and corporate governance by an emerging economy such as South Africa (SA) which has not been explored. This study’s results have key implications for policy-makers, practitioners, investors and regulatory authorities. This study informs these constituencies about a set of governance attributes that are catalysts and/or inhibitors of leverage.

scholarly journals Corporate Governance and Organisational Performance: Analysis of Nigeria Stock Exchange Listed Companies

2018 ◽  
Vol 6 (4) ◽  
pp. 12
Author(s):  
Olajide Solomon Fadun
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Size ◽  
Ceo Duality ◽  
Positive Correlation ◽  
Performance Variables ◽  
Ceo Tenure ◽  
Governance Practices ◽  
And Performance

<p><em>Corporate governance is relevant in both developed and emerging economies. The study investigated the impact of corporate governance on organisational performance, using thirty (30) randomly selected listed companies in the Nigeria Stock Exchange (NSE) in the year 2016. The study focused on three corporate governance variables (i.e., Board Size, Board Independence, CEO Duality/Tenure); and two performance variables - i.e., Returns on Asset (ROA) and Returns on Equity (ROE). The study does not cover the market measure performance variable of Tobin’s Q. The study is an empirical research, with analytical research design. Secondary data, extracted from published annual reports of selected quoted companies and NSE website, is used for the study. The findings revealed a positive correlation between board size, independence directors, and performance variables; but, showed a negative correlation between CEO tenure and performance variables. The result showed that number of directors was not positively related to performance in selected quoted companies in terms of ROA; but, it revealed a positive correlation between board size and performance in terms of ROE. It also showed that the correlation between CEO tenure and performance variables was negative on the two performance variables (ROA and ROE). Regarding relationship between CEO Duality and performance variables (ROA and ROE), the result showed that CEO Duality has a positive correlation with ROA; but had a negative relationship with ROE. Generally, the study revealed that adoption of sound corporate governance practices by listed companies can improve their performance. Companies can benefit from this improved corporate governance practices by way of increased investment from investors and reduced capital cost. Shareholders confidence would be enhanced with attendant improvement in shareholders wealth. The nation’s economy would also benefit from sound corporate governance practices by way of improved GDP. </em></p>

scholarly journals Dimension, structure and skill mix in European boards: Are they converging towards a common model of corporate governance?

2010 ◽  
Vol 8 (1) ◽  
pp. 87-107 ◽  
Author(s):  
Paola Schwize ◽  
Vincenzo Farina ◽  
Valeria Stefanelli
Keyword(s):  
Corporate Governance ◽  
Listed Companies ◽  
Governance System ◽  
Large Sample ◽  
Skill Mix ◽  
European Governance ◽  
Governance Practices ◽  
European Corporate Governance

Using a large sample of European listed Companies and their Directors our study supports the hypothesis that European corporate governance do not yet converging towards a common model. Our results put in evidence in fact the existence of three dominant corporate governance profiles in European listed companies, different each others. The determinants of these profiles depend on the typical governance system adopted by the same companies and on country‟s culture and history; as a consequence, each of them has a own attitude of the board, in terms of structure, organization and skill mix characteristics. Finally we suggest some important implications on European governance practices

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